For MSME accounts in SMA (special mention account) stage, the finance minister also announced continued credit support to such enterprises through a guarantee from a government-promoted fund. The aim is to help MSMEs continue to operate their business and avoid getting into the NPA category.
Budget 2024: Finance Minister Nirmala Sitharaman in her budget speech on Tuesday said the government will launch a new scheme to enable collateral-free term loans for MSMEs in manufacturing sector to buy machinery and equipment.
“For this, a separately constituted self-financing guarantee fund will provide, to each applicant, guarantee cover up to Rs 100 crore, while the loan amount may be larger,” the minister said.
Moreover, Sitharaman also announced that public sector banks will lead the development of a new credit assessment model based on the scoring of digital footprints of MSMEs in the economy.
“This is expected to be a significant improvement over the traditional assessment of credit eligibility based only on asset or turnover criteria. That will also cover MSMEs without a formal accounting system,” the minister said.
For MSME accounts in SMA (special mention account) stage, the finance minister announced continued credit support to such enterprises through a guarantee from a government-promoted fund. The aim is to help MSMEs continue to operate their business and avoid getting into the NPA category.