Parliament Question: Accessible Lending Facilities to MSMEs

GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION NO. 1987 TO BE ANSWERED ON: 11.12.2025 ACCESSIBLE LENDING FACILITIES TO MSMEs 1987. SHRI ADHIKARI SOUMENDU: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) whether the Government has introduced various schemes to enhance competitiveness and accessible lending facilities with support from different Ministries for the Micro, Small and Medium Enterprises (MSMEs) sector in the country; (b) if so, the details of present schemes and maximum loan funding facilities for purposes of working capital, expansion and technology upgrades both in terms or with and without collateral and term deposits therefor; (c) the growth in terms of number, funding and employment in MSME sector during the last three years including repayment status therein; and (d) the report of World Bank's 'Ease of Doing Business' index and its comparative review in terms of India thereof? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a) & (b): The Government of India has taken a number of initiatives and measures to provide support to Micro, Small and Medium Enterprises (MSMEs) for improving access to finance, timely payments and faster technology adoption. Some of them are: i. Ministry of MSME implements Credit Guarantee Scheme (CGS) for MSEs through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide credit guarantee for loans (revised to loans upto Rs 10 crore w.e.f 01.04.2025) extended by Member Lending Institutions to new as well as existing MSEs without collateral security and third-party guarantee. To expand the scope of the Scheme and to ensure greater access to credit for MSEs, CGS was revamped effective from 01.04.2023, following a corpus infusion of Rs. 9,000 crore into CGTMSE. Further, the Standard Rate of the Annual Guarantee Fee (AGF) was reduced by 50%, to as low as 0.37% per annum. ii. Self-Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 crore as equity funding in MSMEs with a provision of Rs. 10,000 crore from the Government of India and Rs. 40,000 crore through Private Equity/Venture Capital Funds. iii. Prime Minister's Employment Generation Programme provides Margin Money subsidy up to 35%, for setting up of new micro enterprises, in the non-farm sector with project cost of Rs. 50 lakh for Manufacturing and Rs. 20 lakh for Services enterprises.: 2 : iv. PM Vishwakarma Scheme was launched on 17.09.2023 to provide end-to-end holistic support to artisans and craftspeople of 18 traditional trades who work with their hands and tools. The Scheme includes provision of loans up to Rs.3 lakh with interest subvention of max up to 8%. v. Ministry of MSME implements MSME Champions scheme with a Holistic Approach to unify, synergize, and converge various schemes and Interventions with a single purpose. The end objective is to pick up enterprises and modernize their processes, reduce wastages, sharpen business competitiveness, and facilitate their National and Global reach and excellence. There are 3 components under the MSME Champions scheme which includes MSME-Sustainable (ZED) Certification Scheme, MSME-Competitive (Lean) Scheme, MSME-Innovative (Incubation, Design & IPR) Scheme. vi. RBI issued guidelines for 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. (c): The following data highlights the growth in terms of number, funding, and employment within the MSME sector under major schemes of the Ministry of MSME over the past three years: SRI Fund Funds (Rs. In crore) FY Fund allocated/ Fund Funds utilised Estimated employment sanctioned (RE) Released generated 2022-23 392.79 392.79 392.79 35,751 2023-24 579.45 579.45 553.78 51,807 2024-25 575.00 575.00 575.00 25,440 CGTMSE – Guarantee Approved (All India) FY No. of Guarantees Amt. of Guarantees Estimated Employment Approved Approved in Crore Generated 2022-23 11,65,786 1,04,781 23,72,984 2023-24 17,24,073 2,02,807 48,19,859 2024-25 27,15,275 3,05,507 72,94,989 PMEGP FY No. of Units Margin Money (MM) Estimated Employment Assisted Subsidy disbursed Generated (Rs. In crore) 2022-23 85,167 2,722.17 6,81,336 2023-24 89,118 3,093.87 7,12,944 2024-25 59,708 2,202.00 4,77,664: 3 : (d): The Government has, inter-alia, taken followings steps to address regulatory hurdles and improve ease of doing business for MSMEs: (i) Udyam Registration Portal was launched on 01.07.2020 to facilitate ease of registration for MSMEs. The process of registration on Udyam is fully online, paperless and based on self- declaration. The Ministry in association with Small Industries Development Bank of India launched Udyam Assist Platform on 11.01.2023, for bringing Informal Micro Enterprises (IMEs) into the formal ambit. This has helped the registered IMEs to avail the benefits of Priority Sector Lending. (ii) The Ministry of MSME reduced the compliance burden on business as well as on citizens related to Public Procurement Policy for Micro and Small Enterprises Order, 2012 vide Notification No. S.O. 3237(E) dated 11.08.2021 as identified by the Department for Promotion of Industry and Internal Trade (DPIIT). (iii) As informed by DPIIT, National Single Window System has been developed, which integrates the existing clearance/regulatory systems of various Ministries/ Departments of Government of India and State Governments. *****