Finance Minister of India, Nirmala Sitharaman is presenting the Union Budget 2024-25 today on July 23. She has announced that the upper limit of MUDRA loans for the Ministry of Micro, Small, and Medium Enterprises (MSMEs) has been doubled. This is done to support the MSMEs as it increases the loan limit from Rs 10 lakh to Rs 20 lakh. The MUDRA scheme was originally launched in 2015 and was aimed to support small and micro enterprises and provide financial aid through commercial banks and non-financial firms.
Additionally, the Finance Ministry of India has also announced a new mechanism to secure the continuity of bank credit to MSMEs during financial struggles. This is focused to drive the start-up ecosystem in India and ensure its growth.
During the last financial year, the government authorized MUDRA loans of up to Rs 5.4 lakh crore to support several small businesses. The Small Industries Development Bank of India (SIDBI) is also set to expand its reach by establishing 24 new branches in the current year and aims to serve more MSMEs in the upcoming three years.
These proposals by the government highlight their effort to grow the MSME sector in India as plays a crucial role in the overall economic development of the nation.
