Union Budget 2025: Nirmala Sitharaman Presents 8th Consecutive Budget, Sets Record

In a major push for small businesses and startups, the Union Budget 2025 has increased credit guarantee coverage significantly. The credit guarantee cover for Micro, Small, and Medium Enterprises (MSMEs) has been raised from ₹5 crore to ₹10 crore. For startups, the coverage has been doubled from ₹10 crore to ₹20 crore. Additionally, well-performing exporter MSMEs can now avail of term loans of up to ₹20 crore. This move aims to enhance financial support, promote entrepreneurship, and boost economic growth by providing better access to credit. The government’s decision is expected to encourage more investment and expansion opportunities for businesses, strengthening India's MSME and startup ecosystem.