New Delhi: The budget proposes to create a risk capital fund in the Small Industries and Development Bank of India (SIDBI) in order to give a boost to micro, small and medium enterprises.
 
SIDBI will also reduce the guarantee fee from 1.5 per cent to 1 per cent and the annual service fee from 0.75 per cent to 0.5 per cent for loans up to Rs5 lakh.

As on 31 January 2008, the Credit Guarantee Trust with SIDBI had extended guarantees to 89,129 units for an amount of Rs2,479 crore.