Mumbai: Fintech (financial technology) startup companies that lend to small businesses have welcomed the government’s decision to expand the credit guarantee scheme for micro, small and medium enterprises (MSMEs) from Rs 5 crore to Rs 10 crore.
The government has also proposed doubling its credit guarantee for startups to Rs 20 crore, a move hailed as a significant boost for emerging businesses seeking financial backing from banks. The announcements, made as part of the Union Budget, received strong support from Maharashtra Chief Minister Devendra Fadnavis.
Statement Of Maharashtra CM Devendra Fadnavis
“The MSME sector is crucial for young entrepreneurs, and the decision to increase the loan limit and frequency criteria is significant for them. Maharashtra is the startup capital, and a loan limit of Rs 20 crore has been set for startups. This will strengthen the startup ecosystem, leading to the growth of various startups and the creation of new employment opportunities. As a result, Maharashtra’s progress in this sector will become even more robust,” said Fadnavis.
On January 17, 2025, 1,000 startups from various sectors, including technology, agriculture, service industries, pharmaceuticals and tourism, were brought together by the Maharashtra government at an event themed ‘Empowering Innovation, Elevating Maharashtra’ in Mumbai. During the event, the CM highlighted the state’s leadership in supporting startups, particularly in the defence manufacturing sector.
“In Maharashtra, we were the first among all states to introduce a startup policy. We have also created a fund of funds, especially for the defence sector. I am happy to share that more than 300 MSMEs and startups have successfully carved their space in the defence manufacturing sector, supported by the fund of funds created by the Maharashtra government,” he stated.
Maharashtra CM Devendra Fadnavis On Potential Of Small Cities
Fadnavis also emphasised the potential of small cities to become major hubs for innovation, stating, “This start-up revolution has to go to tier 2 and tier 3 cities, and we have seen that in many of the startups, people come from these cities and they have been very successful.”
The government’s initiatives and financial support are expected to further enhance the state’s startup ecosystem, fostering innovation, job creation, and economic growth. Fadnavis also welcomed the agricultural initiatives announced in the budget, including the new pulses mission and increasing the credit limit from Rs 3 lakh to Rs 5 lakh.
The chief minister said that allowing 100 FDI in the insurance sector has come with a rider that the companies will now have to invest 100% premium within the country. “This wise and innovative step will help the infrastructure sector. Earlier, the Life Insurance Corporation of India (LIC) used to do that, but now the private companies too have to do it,” he said.
