The Government of India has introduced a broad range of initiatives to improve credit access and financial resilience for Micro, Small, and Medium Enterprises (MSMEs). Through enhancements to credit guarantee schemes, digital lending platforms, and dispute resolution mechanisms, these efforts are designed to unlock liquidity, simplify processes, and promote timely settlements for small businesses across the country.
Expanded credit guarantees and subsidies for enterprise growth
To facilitate greater access to affordable credit, the government has infused an additional ₹9,000 crore into the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This infusion is expected to enable ₹2 lakh crore in new credit, with guarantee coverage raised to 90% for various loan categories. The guarantee limit itself has been increased from ₹5 crore to ₹10 crore, effective April 1, 2025.
The Prime Minister’s Employment Generation Programme (PMEGP) continues to support the creation of micro-enterprises by offering margin money subsidies of up to 35% for projects up to ₹50 lakh in manufacturing and ₹20 lakh in services. Additionally, under the PM Vishwakarma scheme launched in 2023, traditional artisans in 18 trades can now avail loans up to ₹3 lakh, with an interest subvention of 8% to support their livelihood and business expansion.
SRI Fund and SAMADHAAN portal to boost equity and timely payments
The Self-Reliant India (SRI) Fund has been established to infuse ₹50,000 crore in equity into MSMEs with growth potential. Of this, ₹10,000 crore is funded by the government and ₹40,000 crore is sourced from private equity and venture capital. This fund aims to help viable MSMEs scale into larger units.
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To ensure timely settlement of dues, the Ministry of MSME has operationalised the SAMADHAAN portal and Micro & Small Enterprises Facilitation Councils (MSEFCs) in all States and UTs. A total of 161 councils are now active, and a new Online Dispute Resolution (ODR) platform was launched in June 2025 to digitise and fast-track payment-related disputes.
Digital tools for seamless lending and receivables financing
On the digital infrastructure front, the RBI has introduced the Unified Lending Interface (ULI), a streamlined platform to reduce documentation and simplify loan approvals. By eliminating costly integrations and offering real-time decision-making tools, ULI is poised to reduce operational costs and credit delays for MSMEs.
In addition, the Trade Receivables Discounting System (TReDS) continues to expand, allowing MSMEs to receive financing against invoices from large corporates and government buyers. The onboarding threshold for corporates and CPSEs on TReDS has now been lowered to a ₹250 crore turnover, expanding the pool of eligible participants and buyers.
These measures collectively mark a significant push toward financial inclusion, digital enablement, and long-term resilience for India’s MSME sector.