Budget 2025: Many gifts of small entrepreneurs (MSME) have been given in the general budget. The business investment limit has been increased for increasing the availability of debt with guarantee to these entrepreneurs. Also, a credit card has been announced for very small ie micro entrepreneurs.
Credit guarantee cover increased for MSME
Union Finance Minister Nirmala Sitharaman has announced a big relief to MSME on credit guarantee cover in the General Budget 2025-26. In the budget, the limit of first credit guarantee cover for micro and small entrepreneurs was Rs 5 crore, in this general budget, a provision has been made to increase it to Rs 10 crore. This means that the government will guarantee such debt. With the increase in credit guarantee cover, additional loans will be available to micro and small entrepreneurs in the next 5 years. The credit guarantee cover limit for startups has been increased from Rs 10 crore to Rs 20 crore.
Provision of credit card for very small entrepreneurs
The Finance Minister has also made a big announcement for very small i.e. micro/micro entrepreneurs in the general budget. In the budget, a provision has been made to issue credit cards to these entrepreneurs. In his budget speech, the Finance Minister said that we will start a special credit card with a limit of Rs 5 lakh to the micro entrepreneurs registered on the enterprise portal. 10 lakh credit cards will be issued in the first year.
New scheme announced for first time entrepreneurs
A new scheme has been announced for the first time entrepreneurs in the general budget. The budget speech states that a new scheme will be started for 5 lakh women, scheduled castes and scheduled tribes entrepreneurs. This will provide Term Loan up to Rs 2 crore during the next 5 years. The scheme will include experiences from successful stand-up India. Online capacity building programs for entrepreneurship and managerial skills will also be organized.
Amendment to classification criteria for MSME
In the budget, MSMEs have been increased to 2.5 and 2 times the boundaries of classification for all MSMEs with a view to assisting more wide -scale efficiency, technology upgradation and better access to capital. Investment limit for micro industry has been increased from one crore to 2.5 crore, 10 crore for a small to 25 crores and Rs. 50 crore for medium to Rs 125 crore. In the general budget, it is proposed to increase this limit from 5 crore to 10 crores, 50 crore for small and Rs 250 crore for medium to Rs 500 crore for the micro in terms of trading.