FM Sitharaman's Budget 2024: Focus On MSME Credit Assessment
Updated: 28-01-2025 at 6:28 AM
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Nirmala Sitharaman presents the Union Budget for FY 2024-25 on July 23 at the Lok Sabha. The Budget 2024 highlights its focus on Gareeb, women, youth and farmers. As for the Budget 2024 Income Tax Updates, Nirmala Sitaraman has also announced a review of the Income Tax Act 1961 to help the middle class.
The Union Cabinet headed by PM Narendra Modi approved the full budget for 2024-25. However, the public does not seem too happy about the key budget announcements. The public is showing its disagreement in a humorous sense, multiple posts have been put up on all platforms, playfully trolling the Nirmala Sitharaman budget announcement.
Let’s take a look at what the 2024 Interim-Union budget of India has planned for MSMEs.
What Does The Union Budget 2024 Have To Offer To The MSMEs?
In the union budget 2024, Nirmala Sitaraman has announced that the Indian government will focus on developing in-house capabilities for credit assessment of MSMEs. This decision aims to improve the financial inclusion of MSMEs to help them grow.
The government has decided to focus on MSMEs as they contribute significantly to the GDP and employment of the nation but still face multiple issues that have not been dealt with. MSMEs mainly face financial crunches and do not get adequate credit on time.
Building in-house Capabilities announced in the 2024 Interim-Union budget of India aims to gather all public sector banks to establish their own teams and systems for credit assessment. This aims to reduce the reliance of MSMEs on external agencies and also help banks understand the needs and risks associated with lending funds to MSMEs.
Nirmala Sitharaman budget announcement emphasised that in-house capabilities will help in faster decision-making and better financial products for MSMEs because of the non-reliance on external agencies.
Nirmala Sitaraman announced a Rs.100 crore credit guarantee scheme for MSMEs. This govt scheme will help MSMEs with long-term loans without collateral or third-party guarantee. Nirmala Sitharaman budget announcement has addressed that the govt schemes funds will focus on employment generation, skill enhancement, MSMEs and the middle class.
The Union Budget 2024 also announced that the government is planning to extend the PM Garib Kalyan Anna Yojana govt scheme for another 5 years, benefitting around 80 crore people.
How Will This Benefit MSMEs?
The Union Budget 2024 aims to help MSMEs financially. Let’s understand the benefits MSMEs will be receiving.
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Timely Credit Access
MSMEs no longer have to struggle to get funds as the government is planning to make the loan approval processes quicker.
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No Collateral
The Union Budget 2024 has also announced that loans taken by MSMEs no longer have to have collateral or third-party guarantees. This will improve the financial decisions immensely for MSMEs.
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Better Financial Health
By receiving funds way quicker than they used to, MSMEs will be contributing even more to the economy and will not have to worry about money constraints anymore.
Conclusion
The 2024 Interim-Union budget of India has taken a bold step to develop the framework of economic policies to boost economic growth. Even though the government will have to face challenges trying to make public sectors invest in in-house capabilities, it is a very promising change that can make the financial ecosystem more inclusive and enhanced.
You can access the complete Union Budget 2024 abstractions here. Visit Jaagruk Bharat for latest updates and insights on the latest budget.
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