Government Brings New Help for Small Businesses: More Loans, Quick Payments, and Special Funds

The Government of India has taken new steps to help Micro, Small and Medium Enterprises (MSMEs). These are small factories, shops, businesses, workshops and service units that give jobs to crores of people in the country.

The update was officially presented in the Rajya Sabha by the Minister of State for Micro, Small and Medium Enterprises, Sushri Shobha Karandlaje, marking a vital advancement for MSMEs across the country. These steps will make it easier for small businesses to get loans, receive payments on time, and grow.

Bigger Loan Guarantee for Small Businesses

The Government has put ₹9,000 crore into a scheme called Credit Guarantee Scheme. This will help banks give up to ₹2 lakh crore in extra loans to small businesses.

Earlier, the scheme gave a guarantee for loans up to ₹5 crore. From April 1, 2025, this limit is up to ₹10 crore. Now, if a business takes a loan and is unable to repay due to genuine reasons, the government will cover up to 90% of that money. This makes banks more ready to give loans.

Help for New Business Owners

Under the Prime Minister’s Employment Generation Programme, people who start a new business in the non-farming sector can get money help from the government.

The government will pay part of the total cost as a subsidy:

• Up to 35% for eligible entrepreneurs

• You can start a unit worth up to ₹50 lakh for manufacturing and ₹20 lakh for services.

This is to encourage more people to open new businesses and create jobs.

Support for Traditional Workers

The PM Vishwakarma Scheme started on 17 September 2023. It helps artisans and craftsmen that is people who work with their hands, like carpenters, blacksmiths, potters, tailors, and others in 18 traditional trades.

They can get training, tools, and up to ₹3 lakh as a loan at a much lower interest rate. Which makes it easier for them to keep their work going and earn more.

SRI Fund for Growing Businesses

The Self Reliant India (SRI) Fund will give money to small businesses that are doing well and can grow bigger.

The Government has given ₹10,000 crore, and private investors will add ₹40,000 crore. The total ₹50,000 crore will help small companies expand, create jobs, and compete in the market.

Getting Payments on Time: SAMADHAAN Portal

Many small businesses face problems when big companies delay payments.The government started the SAMADHAAN Portal in 2017 to solve this.

Through the SAMADHAAN portal, delayed payment cases are sent to Facilitation Councils for quick resolution. There are 161 such councils across the country.

From 27 June 2025, an Online Dispute Resolution system was also started. It is a fully online way to settle payment-related fights quickly.

Easy Financing through TReDS and New Lending System

The Trade Receivables Discounting System (TReDS) helps MSMEs get money quickly by selling their bills (invoices) to financiers. So that they don’t have to wait for payment from buyers.

The Reserve Bank of India has allowed five companies to run TReDS. Now, even smaller big-companies (with ₹250 crore turnover) must join TReDS so that more small businesses can benefit.

Also, a Unified Lending Interface (ULI) is being developed. To make loan applications simple, now there is no need to give the same documents to each bank separately. It will save time and cost for both banks and businesses.

Why This Matters

These steps will:

• Make it easier for small businesses to get loans

• Ensure they get their payments faster

• Give more help to artisans and traditional workers

• Encourage new people to start businesses

• Help small businesses grow bigger

Small businesses are a big part of India’s economy, giving jobs to lakhs of people. With these changes, the government aims to make their work smoother and help them succeed.