Executive Summary:
This document presents the Indian government's responses to questions raised in Lok Sabha regarding Micro, Small, and Medium Enterprises (MSMEs). It covers topics such as registration on the Udyam Portal, access to credit, measures to reduce payment delays, the effectiveness of the ECLGS scheme, and plans to improve digital adoption among MSMEs. The data provided is current as of July 2025, with some initiatives having specific effective dates.
Key Points / Main Content:
MSME Registration:
* As of 28.07.2025, 6.59 Crore MSMEs are registered on the Udyam Registration Portal, which was launched on 01.07.2020.
Credit Access & Guarantee Schemes:
* The Annual Guarantee Fee (AGF) under the CGTMSE scheme has been reduced by 50%, to as low as 0.37% per annum w.e.f. 01.04.2023.
* The ceiling of guarantee coverage under CGTMSE has been enhanced from ₹5 crore to ₹10 crore, and AGF has been rationalized for guarantees above ₹1 crore w.e.f. 01.04.2025.
* CGTMSE offers a 10% discount on AGF and an additional 5% guarantee coverage for MSEs in Identified Credit Deficient Districts (ICDD).
* A special provision for Informal Micro Enterprises (IME) under CGTMSE was introduced on 14.02.2024, covering credit facilities up to ₹20 lakh with 85% coverage and a guarantee fee of 0.37% (up to ₹10 lakh) and 0.45% (₹10 lakh to ₹20 lakh).
* Annexure I provides state-wise details of guarantees approved under the Credit Guarantee Scheme for the last three years.
* Annexure II provides state-wise details of loan accounts under Pradhan Mantri Mudra Yojana (PMMY) for the last three years.
Payment Delays:
* The SAMADHAAN Portal, launched on 30.10.2017, monitors outstanding dues to MSEs.
* 161 Micro & Small Enterprises Facilitation Councils (MSEFCs) have been set up in States/UTs.
* The monetary limit for onboarding on Trade Receivables Discounting System (TReDS) for Corporates and CPSEs has been reduced to a turnover of ₹250 Crore vide Notification S.O. 4845(E) dated 07.11.2024.
* The Online Dispute Resolution (ODR) Portal was launched on 27.06.2025 to provide digitized resolution of delayed payment cases.
ECLGS Scheme:
* The Emergency Credit Line Guarantee Scheme (ECLGS), launched in May 2020, provided collateral-free loans with 100% guarantee to eligible MSMEs and business enterprises. The scheme was valid until 31.03.2023.
* ECLGS is credited with saving approximately 14.6 lakh MSME accounts, with 93.8% being micro and small enterprises, from becoming non-performing assets (NPA).
Digital and Technological Adoption:
* A New Credit assessment model for MSMEs, leveraging digitally fetched and verifiable data, has been launched to automate loan appraisal.
* The government is promoting digital upgradation through initiatives like Digi Locker, India AI Datasets Platform, BharatNet, and PMWANI.
* The Ministry of MSME supports digital empowerment through Udyam registration, training in Tool Rooms/Technology Centres, the MSME Innovative scheme, and the MSE Green Investment for Financing Transformation scheme.
Impact Analysis:
MSMEs:
* Impact: Benefit from increased access to credit through reduced guarantee fees, enhanced coverage, and special provisions for informal enterprises. Also benefit from measures to address delayed payments and improve digital adoption.
* Action Required: Register on the Udyam Portal. Utilize the SAMADHAAN and ODR Portals to address delayed payments. Adopt digital technologies and participate in government-supported schemes for technological upgrades.
Lending Institutions (Banks and Financial Institutions):
* Impact: Expected to increase lending to MSMEs due to reduced risk from enhanced guarantee coverage and streamlined credit assessment processes.
* Action Required: Implement the new credit assessment model for MSMEs. Participate in the CGTMSE scheme and extend loans under PMMY.
Large Corporates and Government Departments:
* Impact: Subject to measures aimed at ensuring timely payments to MSMEs, including monitoring through the SAMADHAAN Portal and potential dispute resolution through the ODR Portal.
* Action Required: Ensure timely payment settlements to MSMEs. Onboard on the Trade Receivables Discounting System (TReDS) if turnover exceeds ₹250 Crore.
Government (Ministry of MSME and Related Departments):
* Impact: Responsible for implementing and monitoring the effectiveness of the various schemes and initiatives aimed at supporting MSMEs.
* Action Required: Continue conducting awareness programs for MSMEs. Monitor the performance of the CGTMSE and PMMY schemes. Further improve digital infrastructure and accessibility for MSMEs.
Key Entities Referenced
Micro, Small and Medium Enterprises: Government ministry responsible for policies related to MSMEs in India.
Udyam Registration Portal: Online portal for registering MSMEs in India, launched on 01.07.2020.
Credit Guarantee Fund Trust for Micro and Small Enterprises: Scheme providing collateral-free loans to MSMEs.
Pradhan Mantri MUDRA Yojana: Government scheme providing loans to micro-enterprises.
Emergency Credit Line Guarantee Scheme: Scheme launched in May 2020 to provide collateral-free loans to MSMEs during the COVID-19 pandemic.
Aatmanirbhar Bharat Abhiyaan: A Government of India initiative; ECLGS was launched as a part of this Abhiyaan.
SAMADHAAN Portal: Portal launched by the Ministry of MSME on 30.10.2017 for monitoring outstanding dues to MSEs.
Tamil Nadu: A state in India for which specific MSME loan data is requested in the policy document.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UN STARREDQUESTION No. 1860
TO BE ANSWERED ON 31.07.2025
COLLATERAL FREE LOAN
1860. SHRI MANICKAM TAGORE B:
SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH:
SHRI SURESH KUMAR SHETKAR:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the number of functioning Micro, Small and Medium Enterprises (MSMEs) in the country and
the number of such enterprises formally registered on the Udyam Portal;
(b) the steps taken/being taken by the Government to address the issue of lack of access to formal
credit for MSMEs particularly those located in rural areas and Tier-II and Tier-III cities;
(c) the number of MSMEs that have received collateral-free loans under the Credit Guarantee
Fund Trust for Micro and Small Enterprises (CGTMSE) and the Pradhan Mantri MUDRA Yojana
(PMMY) during the last three years, State/UTs-wise particularly for the States of Tamil Nadu, Kerala,
Andhra Pradesh, Karnataka and Telangana;
(d) the measures taken/being taken to reduce the delays in payments from large corporates and
Government departments to MSMEs which directly impact their liquidity and survival;
(e) whether the Government has evaluated the effectiveness of the Emergency Credit Line
Guarantee Scheme (ECLGS) in supporting micro and small enterprises during the COVID-19 period
and thereafter and if so, the details thereof; and
(f) whether the Government has any plan to improve digital and technological adoption among
MSMEs to boost their competitiveness and increase credit access through alternative credit scoring
and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a): Udyam Registration Portal was launched on 01.07.2020 with the revised criteria for
classification of MSMEs. As on 28.07.2025, the total number of MSMEs registered in all India on the
Udyam Registration Portal including Udyam Assist Platform (from 01.07.2020 to 15.07.2025) was 6.59
Crore.
(b) to (c): To improve the impact of the Credit Guarantee Trust Fund for Micro and Small
Enterprises (CGTMSE) Scheme, the Ministry of MSME, Government of India, has introduced
reduction in the Annual Guarantee Fee (AGF) by 50%, from the peak rate of 2% per annum to as low
as 0.37% per annum w.e.f 01.04.2023. Recently, the government has also enhanced the ceiling of
guarantee coverage from ₹5 crore to ₹10 crore and has rationalised the AGF for guarantees above ₹1
crore, with effect from 01.04.2025. Further,: 2 :
i. To promote credit flow to MSEs in Identified Credit Deficient Districts (ICDD) as per RBI,
CGTMSE offers 10% discount on the Annual Guarantee Fees and extend an additional 5%
guarantee coverage.
ii. CGTMSE introduced ‘Special Provision for the Informal Micro Enterprises (IME)’ under Credit
Guarantee Scheme on 14.02.2024. The guarantee covers credit facilities up to Rs. 20 lakh with
85% coverage, with no primary security required, and a guarantee fee of 0.37% for up to Rs. 10
lakh and 0.45% for Rs. 10 lakh to Rs. 20 lakh.
Moreover, to increase awareness among MSMEs in the country awareness programmes are
conducted by the field offices of Ministry of MSME, in coordination with MSME/ Industry
Departments of States/UTs concerned and other MSME stakeholders through physical workshops,
social media, print media & electronic media for creating wide publicity for increasing participation
from all stakeholders.
The details of guarantees extended under the Credit Guarantee (CGS) for last three years State-
wise is mentioned in the attached Annexure-I.
The State/UTs wise details of the number of loan accounts under Pradhan Mantri Mudra
Yogana (PMMY) for last three years is given in Annexure II.
(d): The Government of India has taken a number of measures to ensure timely payment settlements
for Micro and Small Enterprises (MSEs) across the country. The 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 been set-up in States/UTs. The monetary
limit for onboarding on Trade Receivables Discounting System for Corporates and CPSEs has been
reduced to a turnover of Rs. 250 Crore vide Notification S.O. 4845(E) dated 07.11. 2024. Ministry of
MSME has recently launched Online Dispute Resolution (ODR) Portal on 27.06.2025 to provide end-
to-end digitized resolution of the delayed payment cases.
(e): Emergency Credit Line Guarantee Scheme (ECLGS) was launched in May, 2020 as part of
Aatmanirbhar Bharat Abhiyaan to support eligible Micro, Small and Medium Enterprises (MSMEs)
and business enterprises to ease their liquidity position. The Scheme provided for collateral free loans
to existing eligible borrowers with 100% guarantee in respect of the eligible amount as per the Scheme
guidelines. The Scheme was valid till 31.3.2023.
Several impact assessments have been conducted on the effectiveness of ECLGS. As per a
research report dated 23.1.2023 of the State Bank of India on ECLGS, almost 14.6 lakh MSME
accounts of which about 93.8% of the accounts were in the micro and small enterprises categories, have
been saved from slipping into non-performing asset (NPA) classification due to ECLGS.: 3 :
(f): In pursuance of the Union Budget 2024-25 announcement, Hon’ble Finance Minister launched
New Credit assessment model for MSMEs. The model leverages the digitally fetched and verifiable
data and devises automated journeys for MSME Loan appraisal using objective decisioning for all
loan applications and model-based limit assessment for both Existing to Bank (ETB) as well as New to
Bank (NTB) MSME borrowers. The digital footprints used by the model may include Pan
authentication using National Securities Depository Limited (NSDL), Mobile and email
verification using OTP, Application Programming Interface (API) fetch of GST data through
service providers, Bank Statement Analysis using account aggregator, ITR upload and verification,
API enabled commercial and consumer bureau fetch and due diligence using Credit Information
Companies (CICs), fraud checks, through APIs, among others. The model is live with all banks with
different loan amount threshold.
Government has taken several initiatives to promote digital upgradation and adoption of
emerging technologies for greater productivity and competitiveness among MSME across the country.
These include Ministry of Electronics and Information Technology platforms like Digi Locker and
India AI Datasets Platform aimed at empowering MSME to become resilient, competitive and
sustainable by leveraging digital technologies, and Department of Telecommunications networks like
BharatNet and PM-WANI for affordable access and last mile connectivity. Ministry of Micro, Small
and Medium Enterprises is supporting digital empowerment of MSME through digital registration
under Udyam, training in Tool Rooms /Technology Centres for technology adoption, incubation of
new ideas and technologies through MSME Innovative scheme and MSE Green Investment for
Financing Transformation scheme for promoting investment in green technologies. Components of
financial incentives, capacity building and awareness are suitably embedded in the design of the above
Government funded schemes.
*****Annexure-I
Annexure referred to in reply to part (b) to (c) of Lok Sabha Unstarred Question No. 1860 for
answer on 31.07.2025.
Credit Guarantee Scheme – Number of GUARANTEES APPROVED
Sl.
States / UTs FY 2022-23 FY 2023-24 FY 2024-25
No.
1 ANDAMAN & NICOBAR ISLANDS 495 600 655
2 ANDHRA PRADESH 237,520 79,938 110,323
3 ARUNACHAL PRADESH 935 981 1,707
4 ASSAM 21,195 34,556 75,747
5 BIHAR 42,360 113,262 221,458
6 CHANDIGARH 1,706 2,459 17,401
7 CHHATTISGARH 17,733 25,845 40,583
8 DADRA & NAGAR HAVELI & DAMAN & DIU 505 1,039 1,025
9 DELHI 21,458 35,127 55,120
10 GOA 2,826 4,947 6,510
11 GUJARAT 43,336 106,073 110,039
12 HARYANA 30,343 48,455 75,244
13 HIMACHAL PRADESH 14,898 20,600 23,750
14 JAMMU & KASHMIR 51,431 53,295 47,201
15 JHARKHAND 21,090 34,800 64,614
16 KARNATAKA 53,766 135,959 188,144
17 KERALA 25,761 45,515 68,755
18 LADAKH 467 637 709
19 LAKSHADWEEP 25 7 23
20 MADHYA PRADESH 50,289 75,023 131,490
21 MAHARASHTRA 66,055 129,892 238,128
22 MANIPUR 2,268 1,580 1,952
23 MEGHALAYA 1,410 1,693 2,776
24 MIZORAM 1,032 1,232 1,472
25 NAGALAND 1,813 1,563 1,804
26 ODISHA 34,081 56,392 94,128
27 PUDUCHERRY 1,087 2,418 4,471
28 PUNJAB 49,720 81,259 88,991
29 RAJASTHAN 72,391 85,848 120,424
30 SIKKIM 765 1,108 1,748
31 TAMIL NADU 61,883 113,815 179,817
32 TELANGANA 29,792 41,940 97,292
33 TRIPURA 3,845 6,523 8,398
34 UTTAR PRADESH 130,769 247,258 403,938
35 UTTARAKHAND 16,296 26,361 26,268
36 WEST BENGAL 54,440 106,073 203,170
TOTAL 1,165,786 1,724,073 2,715,275Annexure-II
Annexure referred to in reply to part (b) to (c) of Lok Sabha Unstarred Question No. 1860 for
answer on 31.07.2025.
PMMY- State/UT wise number of A/Cs
Sl. No State/UTs 2022-23 2023-24 2024-25
1 Andaman and Nicobar 3463 3131 3027
Islands
2 Andhra Pradesh 1348593 1588682 1464680
3 Arunachal Pradesh 17193 26431 36567
4 Assam 599213 722225 1216262
5 Bihar 8489231 9631277 7771213
6 Chandigarh 17261 15585 15724
7 Chhattisgarh 1114927 1035574 1016177
8 Dadra and Nagar Haveli 4469 3792 3936
9 Daman and Diu 1043 1194 2292
10 Delhi 337476 315625 199513
11 Goa 42745 42505 27585
12 Gujarat 1784437 1960464 1570182
13 Haryana 1218808 1095972 800080
14 Himachal Pradesh 151733 146471 110348
15 Jharkhand 2056159 2129193 1668829
16 Karnataka 5592066 6458940 4943477
17 Kerala 1781474 1973469 1944890
18 Lakshadweep 1623 2309 2258
19 Madhya Pradesh 3701661 3445475 3302774
20 Maharashtra 5253324 5279979 4462791
21 Manipur 39744 10666 11452
22 Meghalaya 24937 31633 35308
23 Mizoram 23394 28729 26463
24 Nagaland 15172 21014 32002
25 Odisha 3922511 3761546 2793890
26 Pondicherry 98394 133357 85730
27 Punjab 1259891 1039309 707516
28 Rajasthan 2977440 2693556 2163626
29 Sikkim 13805 19290 19185
30 Tamil Nadu 6406513 7204001 4536967
31 Telangana 639323 947059 1137388
32 Tripura 350659 324797 348747
33 Union Territory of 330963 366142 399396
Jammu and Kashmir
34 Union Territory of 9988 11013 12197
Ladakh
35 Uttar Pradesh 6808721 7679518 5924230
36 Uttarakhand 445328 445218 338119
37 West Bengal 5426916 6181872 5526827
Total 62310598 66777013 54661648