The Indian Banks’ Association – IBA has welcomed the Union Budget 2024-25 for its focus on infrastructure development, improving domestic employment and skills and overall growth of the economy without deviating from the fiscal math.

In a statement, IBA Chairman Mr. M V Rao hailed the proposal to allow Public Sector Banks to develop an internal model to assess MSMEs for providing credit. He added that a new credit guarantee scheme for the facilitation of term loans for the purchase of machinery and equipment without collateral or third-party guarantee to MSMEs. An enhanced limit of Mudra loans from 10 lakh to 20 lakh rupees will prove quite useful while allowing banks to improve their assessment and financing of this important segment.