Centre plans 10-15% credit guarantees for small firms

THE COUNTRY'S SMALL businesses still struggle with limited access to timely and adequate formal credit.

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The government will allocate about ₹4,000 crore for providing guarantees to banks, both sources said.

The scheme is designed for firms that are stressed due to external factors "beyond their control", and the eligibility criteria are being firmed up, according to the sources.

The criteria will cover small exporters who are currently facing uncertainties due to higher tariffs imposed by the US, a key market for Indian exports, the second source said. The finance ministry did not immediately respond to an email seeking comment.