BUDGET
To launch new INR 100-bln fund of funds, plan for some entrepreneurs
This story was originally published at 13:13 IST on 1 February 2025
Register to read our real-time news.Informist, Saturday, Feb. 1, 2025
--BUDGET:To up credit guarantee cover for startups to INR 200 mln vs INR 100 mln
--BUDGET:To set up new fund-of-funds with INR 100 bln contribution from govt
--BUDGET: To launch scheme for 500,000 backward class women entrepreneurs
--BUDGET: To take online capacity building for women entrepreneurs
--BUDGET: Scheme for SC/ST women will enable term loans of up to INR 20 mln
NEW DELHI – The government will double the credit guarantee cover for start-ups to INR 200 million from INR 100 million, Finance Minister Nirmala Sitharaman said while presenting the Budget for 2025-26 (Apr-Mar) in the Lok Sabha on Saturday.
"For start-ups, from 10 crore rupees (INR 100 million) to 20 crore rupees (INR 200 million) with the guarantee fee being moderated to 1% for loans and 27 focus sectors which are important for Atmanirbhar Bharat," the finance minister said. This will make it easier for emerging businesses to access loans, and is expected to drive innovation across key sectors.
The government will also set up a new 'fund of funds' for start-ups with a corpus of INR 100 billion. The alternate investment fund for start-ups currently has investments totalling INR 910 billion. A customised credit card with a limit of INR 500,000 will also be introduced for micro-enterprises registered on the Udyam portal. "In the first year, 10 lakh (100,000) such cards will be issued," the finance minister said. The government will also provide loans of INR 200 million to well-run exporter MSMEs.
The government will also launch a new scheme to promote entrepreneurship among women, scheduled castes, and scheduled tribes. This programme will provide term loans of up to INR 20 million to first-time entrepreneurs from these groups, during the next five years. "The scheme will incorporate lessons from the successful Stand-Up India scheme," Sitharaman said. End
Reported by Sachi Pandey
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
