• Niti Aayog has proposed concessional loans and a Rs 5 crore emergency credit card for medium enterprises.
• The scheme would offer sector-based loans up to Rs 25 crore under the MSME Ministry.
• It also recommends aligning skill development programs with regional and sector-specific enterprise needs.

Niti Aayog with Administrative Staff College of India has suggested a special financing programme by the Ministry of MSME to provide concessional loans along with provision of a special credit card for medium enterprises. According to the report released on Monday, the scheme proposes extending loans up to a certain percentage of the gross receipt of the enterprise gross revenue in case of a manufacturing enterprise. Also offers gross receipts in the case of a services enterprise with the cap for the assistance being Rs 25 crore and the per-application cap being Rs 5 crore. The medium enterprise cards benefit to utilize in emergency purposes to the enterprises use such as payroll, inventory procurement, and equipment repairs. 

According to the report published by Niti Ayog and Administrative Staff College of India, "Ensure that credit card interest rates align with market rates while allowing a grace period for repayment, designing policy for medium enterprises".

To address short-term cash flow needs, especially during delays in loan disbursement, Niti Aayog has proposed the introduction of a "Medium Enterprise Credit Card". With a credit limit of Rs 5 crore, the card would support urgent expenses like payroll, inventory procurement, or equipment repairs. The report suggests that interest rates on the credit card should be in line with market rates and include a grace period for repayment.

Beyond financing, the report also emphasizes the need to align skilling programmes with the specific needs of medium enterprises based on their sector and regional location. It recommends incorporating enterprise-centric modules into existing entrepreneurship and skill development programmes to better equip the workforce.