## Policy Summary: Enhanced Support for Micro, Small, and Medium Enterprises (MSMEs)
The Government of India, under the Ministry of Micro, Small and Medium Enterprises (MSME), has implemented several measures to bolster credit flow, liquidity, and overall support for MSMEs. Key initiatives include:
**Credit Guarantee Scheme (CGS):** An additional Rs. 9,000 crore was infused into the Credit Guarantee Fund Trust for MSEs, facilitating an additional Rs. 2.00 lakh crore in credit at reduced costs. The guarantee ceiling has been increased from Rs. 5 crore to Rs. 10 crore, effective April 1, 2025, with guarantee coverage up to 90% for various loan categories.
**Prime Minister's Employment Generation Programme (PMEGP):** Provides margin money subsidies up to 35% for establishing new micro-enterprises in the non-farm sector, with project costs capped at Rs. 50 lakh for manufacturing and Rs. 20 lakh for service enterprises.
**PM Vishwakarma:** Launched on September 17, 2023, to provide end-to-end support to artisans and craftspeople in 18 traditional trades. The scheme includes loans up to Rs. 3 lakh with an 8% interest subvention.
**Self Reliant India (SRI) Fund:** A fund of Rs. 50,000 crore has been established to provide equity funding to MSMEs with high growth potential. This includes Rs. 10,000 crore from the Government of India and Rs. 40,000 crore through Private Equity/Venture Capital Funds.
**SAMADHAAN Portal:** Launched on October 30, 2017, this portal monitors outstanding dues to MSEs, with 161 Micro and Small Enterprises Facilitation Councils (MSEFCs) established across States/UTs. An Online Dispute Resolution (ODR) Portal was launched on June 27, 2025, to provide digitized resolution for delayed payment cases.
**Trade Receivables Discounting System (TReDS):** The Reserve Bank of India (RBI) has issued guidelines for TReDS to facilitate the financing of trade receivables for MSMEs from corporate and other buyers. The monetary limit for onboarding on TReDS for Corporates and CPSEs has been reduced to a turnover of Rs. 250 Crore vide Notification dated November 7, 2024. Five entities are currently operating TReDS.
**Unified Lending Interface (ULI):** The RBI has developed ULI to streamline credit access by reducing documentation and simplifying the loan application process. This initiative aims to transform the lending landscape by enabling quicker and better-informed loan decisions and reduced operational costs.
**Source:** Information provided by the Minister of State for Micro, Small and Medium Enterprises, Sushri Shobha Karandlaje, in a written reply in Rajya Sabha on August 7, 2025.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for the development of micro, small, and medium enterprises.
Credit Guarantee Scheme: A scheme by the Ministry of MSME to provide credit guarantees to Micro and Small Enterprises (MSEs).
Credit Guarantee Fund Trust for MSEs: The trust managing the corpus fund for the Credit Guarantee Scheme for Micro and Small Enterprises.
Prime Minister's Employment Generation Programme: A government program providing margin money subsidy for setting up new micro enterprises.
PM Vishwakarma: A scheme launched to provide end-to-end support to artisans and craftspeople working with traditional tools.
Self Reliant India SRI Fund: A fund set up to provide equity funding to MSMEs with growth potential.
SAMADHAAN Portal: A portal launched by the Ministry of MSME to monitor outstanding dues to MSEs.
Unified Lending Interface: RBI developed interface for frictionless credit to transform the lending landscape in India
Ministry of Micro,Small & Medium Enterprises
Government Enhances MSME Support with Credit
Schemes, SRI Fund, And SAMADHAAN Portal
RBI has developed Unified Lending Interface (ULI)
for frictionless credit to transform the lending
landscape in India by making credit more accessible
Posted On: 07 AUG 2025 6:00PM by PIB Delhi
To improve credit flow and liquidity of MSMEs, a number of measures have been taken by the Government
of India. Some of them are:
Under the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) of Ministry of MSME,
additional corpus fund of Rs. 9,000 crore was infused into the corpus of Credit Guarantee Fund Trust for
MSEs, to enable an additional credit of Rs. 2.00 lakh crore, at a reduced cost of credit. Further, the guarantee
ceiling has been increased from Rs. 5 crore to Rs. 10 crore (w.e.f. 01.04.2025) to MSEs, with guarantee
coverage up to 90%, for various categories of loan under CGS.
Prime Minister's Employment Generation Programme provides Margin Money subsidy upto 35%, for setting
up of new micro enterprises, in the non-farm sector with project cost of Rs. 50 lakh and Rs. 20 lakh, for
Manufacturing and Services enterprises, respectively.
PM Vishwakarma, launched on 17.09.2023 to provide end-to-end support to artisans and craftspeople of 18
traditional trades who work with their hands and tools. The Scheme includes provision of loans upto Rs. 3
lakh with interest subvention of 8%.
Self Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 crore as equity funding in those MSMEs,
which have the potential and viability to grow and become large units. Under this Fund, there is a provision of
Rs. 10,000 crore from the Government of India and Rs. 40,000 crore through Private Equity/Venture Capital
Funds.
To ensure timely payment settlements for Micro and Small Enterprises (MSEs) across the country, Ministry of
MSME launched SAMADHAAN Portal on 30.10.2017 for monitoring of the outstanding dues to the MSEs.
161 Micro & Small Enterprises Facilitation Councils (MSEFCs) have so far been set-up in States/UTs.
Ministry of MSME has launched Online Dispute Resolution (ODR) Portal on 27.06.2025 to provide end-to-
end digitized resolution of the delayed payment cases.
RBI issued guidelines for setting up and operating the Trade Receivables Discounting System (TReDS) to
facilitates the financing of trade receivables of MSMEs from corporate and other buyers, including
Government Departments and Public Sector Undertakings (PSUs) through multiple financiers electronically.
Five entities are presently operating TReDS. The monetary limit for onboarding on TReDS for Corporates and
CPSEs has been reduced to a turnover of Rs. 250 Crore vide Notification dated 07.11.2024.
RBI has developed Unified Lending Interface (ULI) for frictionless credit to transform the lending landscape
in India by making credit more accessible by reducing documentation requirements and simplifying the loan
application process. ULI eliminates the need for complex, costly integrations with individual data providers
enabling lenders to make quicker and better-informed loan decisions, cutting approval times and reducing
operational costs.This information was given by the Minister of State for Micro, Small and Medium Enterprises Sushri Shobha
Karandlaje in a written reply in Rajya Sabha today.
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AKS
(Release ID: 2153722)