The government will double the upper limit of loans under the Mudra scheme, Finance Minister Nirmala Sitharaman announced while presenting the Budget 2024 today. She also announced a new mechanism for the continuation of bank credit to MSMEs during their stress period.
Micro, Small, and Medium Enterprises (MSMEs) will now be able to avail loans up to Rs 20 lakh instead of Rs 10 lakh under the Mudra scheme, which aims to bolster the start-up ecosystem in the country.
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Pradhan Mantri Mudra Yojana was launched in 2015 to provide loans up to Rs 10 lakh to small and micro enterprises from commercial banks, small finance banks, and non-banking financial corporations. The government has sanctioned Mudra loans worth Rs 5.4 lakh crore in the last financial year.
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The Finance Minister further said that credit availability for MSMEs during their stressed period will be provided from the government-promoted fund.
The turnover threshold of buyers for mandatory onboarding on the TReDS platform will be slashed from Rs 500 crore to Rs 250 crore, she added. The Budget also has provisions for financial supporting 50 multi-product irradiation units in the MSME sector.
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Export hubs will be set up in public-private partnership mode to enable MSMEs and traditional artisans to sell their products in international markets, she said.
Small Industries Development Bank of India (SIDBI) will open new branches to serve more MSMEs over the next three years, said the Finance Minister. SIDBI aims to open 24 new branches in the current financial year.