Union Budget 2023: Revamped MSME credit guarantee scheme to start on Apr 1

New scheme likely to lower cost of credit by 1%, allow MSMEs to avail addl collateral free credit guarantee of Rs 2 trn

Giving a push to the 63 million micro, small and medium enterprises in India, finance minister Nirmala Sitharaman on Wednesday announced a revamped Credit guarantee scheme for MSMEs with effect from April 1 this year. This may see an infusion of around Rs 9,000 crore into the corpus.

The new credit guarantee scheme is expected to lower cost of credit by 1 per cent and allow MSMEs to avail additional collateral free credit guarantee of Rs 2 trillion. The MSME segment accounts for 30 per cent of GDP and employs nearly 110 million people.

According to a recent study by