In the Union Budget 2024 presentation, Finance Minister Nirmala Sitharaman revealed plans to increase the upper limit for loans under the Mudra scheme from ₹10 lakh to ₹20 lakh. This move is aimed at strengthening the start-up ecosystem and providing greater support to Micro, Small, and Medium Enterprises (MSMEs).
The Pradhan Mantri Mudra Yojana, introduced in 2015, has previously offered loans up to ₹10 lakh to small and micro enterprises through various financial institutions. In the last financial year alone, Mudra loans amounting to ₹5.4 lakh crore were sanctioned.
Additionally, Sitharaman announced a new mechanism to ensure continuous bank credit for MSMEs during periods of financial stress. She also noted that the turnover threshold for mandatory onboarding onto the TReDS platform will be reduced from ₹500 crore to ₹250 crore.
The Budget includes provisions for establishing 50 multi-product irradiation units in the MSME sector and setting up export hubs through public-private partnerships to help MSMEs and traditional artisans access international markets.
Furthermore, the Small Industries Development Bank of India (SIDBI) is set to open 24 new branches within the current financial year to extend its reach and better serve MSMEs.
