New Credit Guarantee Scheme for MSMEs Announced by FM Nirmala Sitharaman
New Delhi: In a significant move to bolster the financial health of Micro, Small, and Medium Enterprises (MSMEs),Finance Minister Nirmala Sitharaman has announced the introduction of a new credit guarantee scheme. This scheme aims to facilitate term loans for MSMEs by addressing the credit risks associated with these enterprises.
The scheme will operate on the cooling of credit risks of such MSMEs,said Sitharaman. A self-financing guarantee fund will be established to provide each applicant with cover of up to Rs 100 crore, although the loan amount may be larger.
