New Delhi [India], February 2 (ANI): The introduction of credit cards for Micro, Small, and Medium Enterprises (MSMEs) is expected to be a transformative move, offering easier access to finance.
However, industry experts stress that streamlining the loan disbursement process is crucial to ensure that financial benefits reach businesses at the grassroots level.
The Union Budget 2025 has been widely welcomed by the MSME sector for its emphasis on financial support, digitization, and sector-specific initiatives.
One of the most significant announcements is the issuance of 10 lakh credit cards to micro-enterprises, each with a limit of Rs 5 lakh. Industry leaders believe this move will enhance financial inclusion and ease liquidity challenges for small businesses.
Jyoti Prakash Gadia, Managing Director at Resurgent India, called the credit card initiative a “game changer” for micro-enterprises registered on the Udyam portal.
He noted that financial accessibility remains a challenge for small businesses, and this step will significantly ease their working capital constraints.
He said “The announcement of 10 lac credit cards with a limit of Rs 5 lacs each for micro-enterprises is a big booster for the availability of much-needed finance for the enterprises registered in the Udyam portal. This is expected to be a game changer”.
Additionally, the budget has raised the credit guarantee cover for micro-enterprises from Rs 5 crore to Rs 10 crore, a move expected to generate Rs 1.5 lakh crore in additional credit over the next five years.
Despite these positive steps, industry leaders caution that ensuring timely access to credit remains a challenge.
Mukul Goyal, Co-Founder of Stratefix Consulting, highlighted the need to reduce bureaucratic hurdles in the loan disbursement process.
“While these measures are promising, it is crucial to address the persistent challenges that MSMEs face. Access to timely and affordable credit remains a hurdle for many small businesses. Streamlining the loan disbursement process and reducing bureaucratic red tape is essential to ensure that the intended benefits reach the grassroots level,” Goyal said.
Experts also welcomed the government’s focus on technology adoption and product-specific initiatives, such as targeted support for the leather and toy industries. These measures are expected to enhance competitiveness and expand global market reach for MSMEs.
Overall, industry leaders believe that while the budget has laid a strong foundation for MSME growth, its success will depend on effective implementation. Ensuring smooth loan disbursement and reducing red tape will be crucial in enabling small businesses to thrive and contribute to India’s economic expansion. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.