Micro, small, and medium enterprises or MSMEs play a vital role in the Indian economy, contributing significantly to the country's GDP, exports, and employment generation. However, securing financing has remained an issue for MSMEs, limiting their potential to scale up and compete in today's business environment. This is where Bajaj Finserv Business Loans come in, providing MSMEs, including those in diverse MSME industries, with access to capital and giving them the much-needed boost to succeed.
What are MSME industries?
Micro, small, and medium enterprises (MSMEs) form the backbone of our industrial landscape. This diverse sector encompasses businesses ranging from local artisans and small manufacturers to tech startups, each playing a unique role in driving economic progress.
Key Features of Budget 2025-26 for MSMEs (February 2025)
Scheme for First-Time Entrepreneurs:
A new scheme will be launched to provide term loans of up to Rs. 2 crore to 5 lakh first-time entrepreneurs, including women, Scheduled Castes (SC), and Scheduled Tribes (ST), over the next 5 years.
Manufacturing Mission Focus Areas:
The mission will focus on:
Focus Area |
Description |
Ease and cost of doing business |
Making it easier and cheaper to start and run a business. |
Future-ready workforce for in-demand jobs |
Creating a skilled workforce to meet future job needs. |
A vibrant and dynamic MSME sector |
Strengthening and growing the MSME sector. |
Availability of technology |
Ensuring businesses have access to modern technology. |
Quality products |
Encouraging businesses to produce high-quality products. |
Clean tech manufacturing for climate-friendly development |
Promoting eco-friendly manufacturing methods. |
Measures for Labour-Intensive Sectors:
Focus Area |
Description |
Footwear & Leather Sectors |
A scheme expected to create 22 lakh jobs, generate a turnover of Rs. 4 lakh crore, and exports of over Rs. 1.1 lakh crore. |
Toy Sector |
Focus on creating clusters, developing skills, and building a manufacturing ecosystem to produce high-quality, innovative, and sustainable toys under the 'Made in India' brand. |
Food Processing |
Establishment of a National Institute of Food Technology in Bihar, increasing income for farmers and providing opportunities for skilling, entrepreneurship, and employment for youth. |
Enhancement of Credit Availability with Guarantee Cover:
Rs. in Crore |
Credit Guarantee Cover |
Current |
Revised |
MSEs |
5 |
Startups |
10 |
Exporter MSMEs |
For Term Loans Up To Rs. 20 Crore |
Revision in Classification Criteria for MSMEs:
Rs. in Crore |
Investment |
Turnover |
Current |
Revised |
Current |
Micro Enterprises |
1 |
2.5 |
Small Enterprises |
10 |
25 |
Medium Enterprises |
50 |
125 |
Challenges faced by MSMEs
MSMEs face several challenges, which limit their growth and development and affect their overall business success.
- Access to finance: Limited access to funds remains a pervasive challenge for MSMEs, hindering their expansion and development.
- Technological adoption: Embracing technological advancements can be a daunting task for smaller enterprises with constrained resources.
- Market penetration: Competing with larger players in the market poses a significant hurdle for many MSMEs.
Additional Read: MSME Classification
Bajaj Finserv Business Loans for MSMEs
Bajaj Finance offers business loans to MSMEs, providing them with access to capital to grow their businesses. The following are ways in which a Bajaj Finserv Business Loan can help MSMEs:
Fund business expansion: A Bajaj Finserv Business Loan can be used for business expansion, including opening new branches, increasing production capacity, launching new products or services, and hiring additional employees.
Purchase of equipment and upgrades: MSMEs can upgrade their equipment and machinery, allowing them to boost productivity, enhance efficiency, and reduce operating costs.
Working capital requirements: The loan can be used to meet short-term working capital needs. This ensures that the business has sufficient funds to pay for utilities, salaries, and other expenses.
Flexible loan repayment: Bajaj Finance offers flexible loan repayment options so that MSMEs can choose repayment periods that suit their cash flow needs. Longer repayment periods can result in lower instalments, and vice versa.
Low interest rates: Compared to other sources of financing, Bajaj Finance offers business loans at competitive interest rates, ensuring lower overall financing costs for MSMEs.
Access to financing is critical for MSMEs to achieve their growth and development goals. Bajaj Finserv Business Loans provide MSMEs with access to capital for business expansion, equipment purchases, and meeting working capital needs. As an MSME, do not let a lack of financing hold you back. Apply for a Bajaj Finserv business loan today and take your business to the next level.
