"Reviving Affordable Loan Schemes for MSMEs"

"Loans at Competitive Interest Rates to Empower Small Businesses"

The government is reintroducing affordable loan schemes for Micro, Small, and Medium Enterprises (MSMEs). These loans will be available at significantly reduced interest rates, helping to stimulate growth, improve operations, and ensure financial stability for small businesses across the nation.

MSME Export Support The interest equalisation scheme launched in 2015 for exporters was discontinued in December 2024. Exporters have repeatedly demanded the government to restart this scheme. In view of the US imposition of tariffs and uncertainty in the global economy, the issue is now being considered by the government.

The loan subsidy scheme (interest equalisation scheme) can be restarted for MSME exporters. The government is considering this. This scheme was discontinued in December 2024. But in view of the US imposition of import tariffs and uncertainty in the global economy, it can be restarted. This will enable exporters to get cheaper loans (MSME Export Loan).

At present, exporters get loans from banks at 8 to 12 percent interest. The interest rate for MSMEs is sometimes even higher than this. Indian MSMEs have to compete with China, where entrepreneurs get loans at 2 to 3 percent interest.