Finance Minister Nirmala Sitharaman in Budget 2024-25 increased the limit of Mudra loans from Rs 10 lakh to Rs 20 lakh and introduced a new assessment model for MSME credit. Sitharaman said that for facilitating term loans to MSMEs for purchase of machinery and equipment without collateral or third party guarantee, a credit guarantee scheme will be introduced and that the scheme will operate on pooling of credit risks of such MSMEs. “A separately constituted self financing guarantee fund will provide to each applicant guarantee cover up to 100 crore…