Finance Minister Nirmala Sitharaman on Saturday announced the credit guarantee cover for micro and small enterprises will be significantly improved, while presenting the Budget 2025. For MSMEs, the guarantee limit will increase from Rs 5 crore to Rs 10 crore, unlocking an additional Rs 1.5 lakh crore in credit over the next five years.

For term loans up to Rs 20 crore, credit guarantees will also be enhanced. For microenterprises, a customized credit card with a Rs 500 limit will be introduced. In the first year, 10 lakh such cards will be issued.

A special scheme will also be launched to support five lakh women and Scheduled Caste (SC) and Scheduled Tribe (ST) first-time entrepreneurs. This scheme will offer term loans up to Rs 2 crore over the next five years, drawing on lessons learned from the successful Stand-Up India scheme. Additionally, online capacity building programs will be organized to enhance entrepreneurship and managerial skills.