New Delhi: Breaking News Budget 2024 for MSMEs: New credit scheme, reduced TReDS turnover threshold, enhanced Mudra loan limit from 10Lakh to 20Lakh & Many more.
Budget 2024: Finance Minister Nirmala Sitharaman Ji on Tuesday announced a slew of measures to boost the MSME sector. The minister enhanced the limit for loans under the government’s Mudra scheme to Rs 20 lakh from Rs 10 lakh to boost credit access for micro enterprises.
In FY24, 6.67 crore Mudra loans were sanctioned involving Rs 5.41 lakh crore while Rs 5.32 lakh crore loans were disbursed, according to the data from the Mudra portal.
Moreover, Minister also reduced the turnover limit from Rs 500 crore to Rs 250 crore for mandatory onboarding of buyers on TreDS — the invoice discounting platform by the Reserve Bank Of India. “This would bring 22 more central public sector enterprises (CPSEs) and 7,000 more companies on TReDS,” said Sitharaman.
As per the data available on MSME Dashboard, the Ministry of Corporate Affairs had identified 5,871 companies with turnover of more than Rs 500 crore to be onboarded on TreDS, of which 1,932 companies are currently on the platform. The data showed that 196 CPSEs are onboarded on TReDS.
The minister also announced a credit guarantee scheme for MSME to enable term loans without collateral or third-party guarantee.
Other announcements included:
- New mechanism for facilitating the continuation of bank credit for MSMEs during stress period. Importantly, the gross NPAs in MSME loans by scheduled commercial banks had dropped by 14.3 per cent to Rs 1.31 lakh crore for FY23 from Rs 1.54 lakh crore during FY22.
- Financial support for 50 multi-product food irradiation units in MSME sector
- Facilitating investment-grade energy audit of micro and small industries in 60 clusters
- E-commerce export hubs to be set up in PPP mode for MSMEs and traditional artisans to sell their products in international markets.
