Union Budget 2026 Strengthens Risk Capital Access for Small Businesses : Home Credit India

The Union Budget 2026 has been welcomed by Home Credit India for its strong push to improve access to risk and growth capital for small businesses and micro-enterprises. According to the company, these measures are expected to boost job creation, support responsible consumption, and strengthen borrower resilience across Tier-2 and Tier-3 cities.

Union Budget 2026 Focuses on SME and Micro-Enterprise Growth

Vivek Singh, CEO, Home Credit India, said the Union Budget 2026 addresses a critical gap in financing for small businesses.

The introduction of a ₹10,000 crore SME Growth Fund, along with a ₹2,000 crore micro-enterprise risk capital top-up, will create fresh financial resources at the community level. As a result, families and business owners will be better positioned to sustain spending on durable goods, transportation, and housing needs.

Risk Capital to Support Jobs and Local Consumption

Importantly, improved access to risk capital is expected to translate into new job opportunities. When small businesses grow, income stability improves. Consequently, demand for two-wheelers, consumer durables, and residential requirements is likely to remain steady.

The Union Budget 2026 also enables more stable and responsible spending patterns by strengthening the role of NBFCs. These institutions play a key role in financing two-wheelers, consumer durables, and loan-against-property products.

Higher Public Capex to Boost Tier-2 and Tier-3 Cities

Public capital expenditure has been raised to ₹11 lakh crore in FY26. Moreover, the government plans to increase it further to ₹12.2 lakh crore in FY27. This step is expected to sustain income levels and generate employment, especially in smaller cities where consumption is steadily rising.

With FY27 net borrowing projected at ₹15.44 lakh crore, the Union Budget 2026 creates a supportive environment for NBFCs to finance SMEs and retail borrowers. Better infrastructure and regional connectivity will also drive demand across these markets.

Skilling and Compliance Support Add Long-Term Stability

In addition, modular skilling initiatives announced in the Union Budget 2026 will help workers adapt to changing job needs. At the same time, MSME compliance support through Corporate Mitras will reduce operational stress for small units.

These steps will ensure income continuity and improve borrower confidence. Over time, this approach is expected to promote need-based and sustainable consumption rather than short-term spending cycles.

Budget 2026 Seen as Positive for NBFCs and Borrowers

Overall, Home Credit India believes the Union Budget 2026 creates a balanced framework for growth. By combining risk capital, public investment, skilling, and compliance support, the budget strengthens small businesses, empowers borrowers, and supports inclusive economic expansion across India.

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