Union Budget 2024: Government to launch credit guarantee scheme for MSMEs, reduces turnover threshold for TReDS onboarding – Times of India

NEW DELHI: The government will introduce a credit guarantee scheme for MSMEs to facilitate term loans without collateral or third-party guarantees, Finance Minister Nirmala Sitharaman announced on Tuesday. Presenting her seventh consecutive Union Budget, Sitharaman also stated that public sector banks will develop in-house capabilities for credit assessment of MSMEs.
To bolster the sector, the government will reduce the turnover threshold for MSME buyers’ mandatory onboarding on the TReDS platform from Rs 500 crore to Rs 250 crore. TReDS is an online platform designed to assist MSMEs (Micro, Small, and Medium Enterprises).
In addition, SIDBI will open 24 new branches to serve MSME clusters.
The Budget allocates Rs 2.66 lakh crore for rural development. Furthermore, the government will launch a saturation drive under the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN).