Micro, small, and medium enterprises (MSME) play a pivotal role and act as a second engine of the Indian economy. MSME mainly includes small-scale and budget businesses, as well as startup businesses. MSME provides large employment, industrializes rural areas, and reduces regional imbalances and gender disparities.
For this reason, the Government of India brings many new schemes and incentives for the growth of MSME. Finance Minister Nirmala Sitharaman launched a new credit guarantee scheme to facilitate term loans to MSMEs in Budget 2025 and also changed the definition of the MSME sector. MSMEs can avail of various schemes of the government through the Udyam registration.
Through this article, we will know about the new credit guarantee schemes for MSMEs in India, what are its benefits and how an MSME can get the benefits of the schemes by getting its Udyam registration done.
Why were New Credit Guarantee Schemes Introduced?
New credit guarantee schemes have been launched. Currently, there are one crore registered MSMEs employing 7.5 crore people. MSMEs generate 36% of manufacturing capacity, and India has become a global manufacturing hub with its quality products. MSMEs also contribute to 45% of exports. Therefore, to enable MSMEs to access better investment capital and for technological upgradation, new credit guarantee schemes have been introduced.
New Credit Guarantee Schemes For MSMEs:
- The collateral-free loan that micro and small enterprises get under the Credit Guarantee Scheme has been enhanced. It has been increased from Rs 5 crore to Rs 10 crore, and an additional credit of Rs 1.5 lakh crore will be available for the next 5 years.
- If MSMEs are well-run exporters and need collateral-free loans in the form of term loans, they will get up to Rs 20 crore loan under the Credit Guarantee Scheme.
- Micro enterprises registered in the Udyam portal will get customized credit cards with a Rs 5 lakh limit.
- A new scheme has been launched in which 5 lakh women, scheduled castes, and scheduled tribes who are first-time entrepreneurs will be provided a term loan of up to Rs 2 crore for the next 5 years.
How can MSMEs apply for the New Credit Guarantee Scheme?
To avail of the benefits of the New Credit Guarantee Scheme, first of all, MSMEs have to register their enterprises on the Udyam Registration Portal. Follow the steps given below and get your MSME Udyam Registration done.
1. Visit the official website.
- First of all, visit the most trusted website, Udyam Registration.
- The new Udyam registration section will open on the homepage itself.
2. Fill out the form.
- After scrolling down, you will get the Udyam registration form, fill it out.
- First of all, fill in the basic details like the applicant's name, mobile number, email ID, etc.
3. Fill in the business details.
- Provide basic details of your business like business name, address, commencement of business, type of organization, etc.
4. Fill in your investment details.
- How much is your investment in plant and machinery
- And your annual turnover.
5. Fill in your document details.
- Aadhaar Card Number, PAN Number, and GSTIN number.
6. Provide your bank details.
- Provide your correct bank name, bank account number, and IFSC code.
7. Fill in the number of people employed.
- Give information about how many men and women are there in your organization.
- If you want to give any additional details about your business, you can do so.
8. Enter the Verification Code.
- The verification code will be given in the captcha box, enter it correctly.
Tick mark on the terms and conditions and declaration and then submit the application
After applying, you will reach our payment gateway, where you will have to pay only nominal charges to get your udyam registration done quickly and without any hassle. Then, you will get a call for OTP, and after your OTP is verified, you will get a confirmation mail on the email ID you have given.
Udyam registration number will be received in an email in 1-2 working days.
Benefits of New Credits Guarantee Schemes:
- MSMEs can further enhance their plant machinery.
- Collateral-free loans help MSMEs innovate in their business and also help to enhance their supply chain.
- With its help, MSMEs can boost their export sector
- It provides financial security to MSMEs to enable new technological innovations and upgradation
- This makes MSMEs financially stronger and due to this, a more competitive market can also be created
Conclusion:
This scheme is a very encouraging step taken by the government, with the help of which financial security is provided to MSMEs and helps to strengthen their market in the competitive environment and bring new technological upgradation. Due to this, MSMEs can also expand their business in the export sector, and India can become a global exporting hub. It helps MSMEs to play a key role in fortifying India's manufacturing ecosystem, in the country's development, in GDP growth, and in the overall country's progress.
Therefore, get your Udyam registered quickly and boost your business further by taking advantage of the New Credit Guarantee Scheme. If you have any problem related to registration, you can contact us.
