UNION BUDGET PROPOSED A SLEW OF MEASURES TO SUPPORT MSMES
News: The Union Budget has proposed a slew of measures to support MSMEs including proposal to introduce a credit guarantee scheme for facilitating term loans for purchase of machinery and equipment without collateral or third-party guarantee and a guarantee from a government-promoted fund to provide credit support during stress period. Further, limit under Mudra loans has been doubled to ₹20 lakh. Public sector banks have been asked to formulate new mechanism to assess credit worthiness of MSMEs.
Views: These measures announced in budget will ensure improvement in timely and smooth flow of credit to MSME sector which will aid business growth for banks and small business financiers.
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