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

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