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Budget 2023: Credit Guarantee Scheme for MSMEs gets Rs 9,000-cr boost

This is expected to reduce the cost of credit by 1 per cent for MSMEs, said Union Finance Minister Nirmala Sitharaman

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Abhijit Lele New Delhi
The government will infuse Rs 9,000 crore into the Credit Guarantee Scheme for micro, small and medium enterprises (MSMEs), enabling lenders to dispense additional credit worth Rs 2 trillion.

This is expected to reduce the cost of credit by 1 per cent for MSMEs, said Union Finance Minister Nirmala Sitharaman on Wednesday.

Last year, the government mooted revamping the scheme; the revised scheme will come into effect from April 2023.

A K Goel, chairman, Indian Banks’ Association (IBA) and MD & CEO, Punjab National Bank, said: “An enhanced corpus of the scheme for MSMEs, and less stringent contract execution would