Budget 2025-26: MSME Credit Guarantee and Startup Support
Why in the news
Budget 2025-26 brought steps to widen credit for MSMEs, startups and first-time entrepreneurs and to lift exports.
Key facts
- Exporter MSMEs that are well run get term-loan guarantee cover up to ₹20 crore.
- Existing Alternate Investment Funds backed by the ₹10,000 crore Fund of Funds have commitments above ₹91,000 crore.
- The new Fund of Funds adds ₹10,000 crore with a wider scope; a Deep Tech Fund of Funds will be explored.
| Guarantee cover | Earlier | Now |
|---|---|---|
| Micro and small enterprises | ₹5 crore | ₹10 crore |
| Startups | ₹10 crore | ₹20 crore |
Scheme for first-time entrepreneurs
- Aims at 5 lakh women, SC and ST entrepreneurs over five years.
- Term loans up to ₹2 crore with online training; modelled on Stand-Up India.
Export Promotion Mission
- Run jointly by the Commerce, MSME and Finance ministries.
- Focus: export credit access, cross-border factoring and help with non-tariff barriers.
Exam angle
- Credit cards are for enterprises registered on the Udyam portal.
- The entrepreneur scheme draws on Stand-Up India.