Small and Medium Entrepreneurs Can Now Avail Loans up to ₹5 Crore
The Government has provided major relief to Micro, Small, and Medium Enterprises (MSMEs). Now, under the MSME Credit Guarantee Scheme, businesses can avail loans up to ₹5 crore, a significant increase from the previous limit of ₹2 crore. The fee for this loan has also been reduced for MSMEs. Prime Minister Narendra Modi stated that the improvement in the Credit Guarantee Scheme is part of the Government's efforts to strengthen the MSME sector.
On April 8, MSME Minister Narayan Rane tweeted about the continuous efforts to strengthen the MSME sector, stating that the Credit Guarantee Scheme has been revamped to improve the flow of loans to MSMEs. The loan guarantee limit has been increased from ₹2 crore to ₹5 crore. In response, Prime Minister Modi tweeted, "This is part of our government's efforts to strengthen the MSME sector."
Under the Credit Guarantee Scheme, MSMEs must approach banks with their full project details to avail the loan. The bank then approves the loan based on the project. The interest rate for the loan depends on the bank. Entrepreneurs are required to pay an annual fee for the loan, which ranges from 0.37% to 1.35% of the loan amount.