Union Budget 2025: Government to offer Rs 2 crore term loan for 5 lakh first-time women, SC, ST entrepreneurs, says Finance Minister

The government will launch a Rs 2-crore term loan for five lakh first-time women, SC and ST entrepreneurs, Finance Minister Nirmala Sitharaman said in her budget presentation on Saturday, February 1.

Online capacity building for entrepreneurship and managerial skills will also be organised, she said.

The finance minister, while presenting the Union Budget for 2025-26, also announced the formation of a manufacturing mission for SMEs and major industries.

Furthermore, Sitharaman stated that the government will implement facilitation measures to increase productivity in labour-intensive industries.

The credit guarantee cover will be doubled to Rs 20 crore, guarantee fee moderated to 1 per cent, she added.

She also said a national institute of food technology, entrepreneurship, and management will be established in Bihar.

Building rural prosperity and resilience

A comprehensive multi-sectoral ‘rural prosperity and resilience’ programme will be launched in partnership with states. This will address underemployment in agriculture through skilling, investment, technology, and invigorating the rural economy. The goal is to generate ample opportunities in rural areas so that migration is an option, but not a necessity. 

The programme will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families, said Sitharaman.

The programme will focus at the following:

1) Catalysing enterprise development, employment and financial independence for rural women;
2) Accelerating creation of new employment and businesses for young farmers and rural youth;
3) Nurturing and modernizing agriculture for productivity improvement and warehousing, especially for marginal and small farmers; and
4) Diversifying opportunities for landless families. 

"India Post will also be transformed as a large public logistics organisation. This will meet the rising needs of Viswakarmas, new entrepreneurs, women, self-help groups, MSMEs, and large business organisations," the Finance Minister further said in her budget speech.

The Saksham Anganwadi and Poshan 2.0 programme 

It offers nutritional support to around 8 million children, 1 crore pregnant women and breastfeeding moms across the country, and over 20 lakh teenage females in aspirational districts and the northeast area. The cost norms for nutritional supplementation will be adjusted accordingly.