Budget 2025: Are you a first-time entrepreneur? Here’s what FM Sitharaman has for you

Union Budget 2025: If you are a first-time entrepreneur, Finance Minister Nirmala Sitharaman has something in store for you. The minister presented her eighth consecutive budget on Saturday. 

In a leg-up to first time entrepreneurs, FM Sitharaman launched a new scheme that would benefit 5 lakh women, scheduled caste, and scheduled tribe first-time entrepreneurs. The scheme would provide them loans of up to Rs 2 crore during the next five years. 

“The scheme will incorporate lessons from the successful Stand-Up India scheme. Online capacity building for entrepreneurship and managerial skills will also be organised,” said the minister.

Over and above that, she also announced that Alternate Investment Funds (AIFs) for startups have received commitments of more than Rs 91,000 crore. 

“These are supported by the Fund of Funds set up with a government contribution of Rs 10,000 crore. Now, a new Fund of Funds, with expanded scope and a fresh contribution of another Rs 10,000 crore will be set up,” she said. 

FM SITHARAMAN ON MSMEs

FM Sitharaman announced a revision in the classification criteria for Micro, Small, and Medium Enterprises (MSMEs) to bolster their growth and contribution to the economy. To aid MSMEs in achieving greater efficiencies, technological advancements, and improved access to capital, the investment and turnover limits for their classification will be increased by 2.5 and 2 times, respectively. 

In a significant step to enhance credit availability, the credit guarantee cover for MSMEs will be increased from Rs 5 crore to Rs 10 crore, resulting in an additional credit of Rs 1.5 lakh crore over the next five years. Startups will also benefit from an increased cover, from Rs 10 crore to Rs 20 crore, with a moderated guarantee fee of 1 per cent for loans in 27 sectors.

Exporter MSMEs with strong performance will have access to term loans up to Rs 20 crore.
Additionally, the government plans to introduce customized Credit Cards with a Rs 5 lakh limit for micro enterprises registered on the Udyam portal. In the first year, 10 lakh such cards are expected to be issued, providing micro enterprises with tailored financial solutions.