Budget 2024: Public sector banks to build in-house capability for credit assessment of MSMEs, says FM Sitharaman

Budget 2024: Union Finance Minister Nirmala Sitharaman on Tuesday said the public sector banks will build in-house capability for credit assessment of micro, small and medium enterprises (MSMEs).

She made the announcement while presenting the Union Budget for 2024-25 in the Lok Sabha on Tuesday.

The finance minister also announced a ₹100 crore credit guarantee scheme for MSMEs. The scheme will facilitate term loans without collateral or third-party guarantee.

As part of a slew of measures to boost the sector, the government will reduce the turnover threshold of MSME buyers for mandatory onboarding on TReDs platform from ₹500 crore to ₹250 crore.

TReDS is an online platform to help MSMEs.

She also said that SIDBI will open 24 new branches to serve MSME clusters.

Earlier, Sitharaman met President Droupadi Murmu at Rashtrapati Bhavan, ahead of the Budget presentation.

The current Union Budget marks Nirmala Sitharaman's seventh consecutive budget and eclipses the late Moraji Desai's record of six consecutive budgets.

In the Budget, Sitharaman said ₹2.66 lakh crore is being provided for rural development.

Further, the government will launch a saturation drive under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN).

The Union Budget for 2024-25 allocated ₹1.48 lakh crore for education, employment and skill development in the country.

Sitharaman said the fund allocation will focus on employment, skilling, MSMEs and the middle class.

The government has extended the PM Garib Kalyan Anna Yojana for five years which is benefiting 80 crore people, she added.

As mentioned in interim budget, there is a need to focus on poor, women, youth and farmers, the minister said.

She added that people have given the Narendra Modi-led government a unique opportunity to take India on the path of development andprosperity.

Sitharaman also said the government will come out with an economic policy framework to usher in next-generation reforms to boost economic growth.