The Union Budget 2025-26 has introduced measures to simplify loan access for Micro, Small, and Medium Enterprises (MSMEs), focusing on enhancing credit guarantees and offering customized credit solutions.
Key Measures Announced:
- Credit Guarantee Cover for MSMEs Enhanced:
- For Micro and Small Enterprises, the credit guarantee cover has been increased from ₹5 crore to ₹10 crore. An additional ₹1.5 lakh crore in credit will be made available over the next five years.
- For Startups, the cover has been raised from ₹10 crore to ₹20 crore, with the guarantee fee reduced to 1% for loans in 27 focus sectors.
- Customized Credit Cards for Micro Enterprises:
- Micro Enterprises registered on the Udyam Portal will have access to customized credit cards with a ₹5 lakh limit.
- 10 lakh credit cards are set to be issued in the first year.
These measures are aimed at providing easier and more flexible financing options for MSMEs, supporting their growth and operational needs. The government’s focus remains on strengthening the MSME ecosystem through improved credit availability and financial accessibility.
