The centerpiece of the government’s revival plan for MSMEs is a ₹3,00,000 crore lending facility. And it has three big delivery challenges
In 2000-01, the Central government launched a scheme for small businesses that did not have collateral such as property and were unable to secure bank loans. Under this scheme, the Centre guaranteed 75-85% of the loan, with the lender bearing the balance risk. In 2018-19, this scheme extended guarantees worth ₹30,168 crore. Till now, the increase in these guarantees had been incremental rather than exponential.