Microenterprises seek faster loans, simpler rules, and higher GST exemption in budget 2025
New Delhi [India], January 30 (ANI): As the Union Budget 2025 nears, India's microenterprises comprising 98.5 per cent of the MSME sector are calling for easier access to credit, reduced compliance burdens, and a more supportive policy environment.
Given their significant role in employment generation, particularly in rural and semi-urban areas, microenterprises are seen as key drivers of India's Atmanirbhar Bharat vision and the goal of a USD 5 trillion economy.
Lakshmi Venkatesan Venkataraman, Founding and Managing Trustee, Bharatiya Yuva Shakti Trust, said, "One of the key concerns for microentrepreneurs is access to timely and adequate credit. While fintech firms and NBFCs process loans in a few days, banks still take 2-3 months, causing delays."
She added, "The current loan size under the MUDRA scheme, particularly in the Shishu category, averages Rs 37,000, which is insufficient for microentrepreneurs to expand and sustain their businesses effectively. Increasing loan amounts, providing up to 4 per cent interest subvention, lowering margin money requirements from 25 per cent to 10 per cent, and reducing processing fees will ease financial stress on micro businesses. Additionally, loan processing and credit guarantee fees should be reduced to 0.25 per cent."
