**Executive Summary**
This document is a response to Lok Sabha Unstarred Question No. 1908, regarding the credit gap among women-led Micro, Small and Medium Enterprises (MSMEs). It details various government initiatives aimed at ensuring disbursement and credit-guarantee coverage for women-owned enterprises. The question was scheduled to be answered on December 11, 2025.
**Key Points / Main Content**
* **Credit Guarantee Scheme (CGS):**
* Provides credit guarantees for loans to MSEs without collateral or third-party guarantees.
* Offers 90% credit guarantee coverage for loans to women-led MSEs, compared to 75% in general.
* Provides a 10% relaxation in the guarantee fee for women-led MSEs.
* **Public Procurement Policy:**
* Mandates that Central Public Sector Enterprises (CPSEs)/Ministries/Departments procure at least 3% of their annual procurement from women-led MSMEs.
* **Prime Minister's Employment Generation Programme (PMEGP):**
* Implements a credit-linked subsidy program to promote self-employment through micro-enterprises in the non-farm sector.
* 39% of PMEGP beneficiaries are women.
* Women beneficiaries receive a higher subsidy (35%) compared to the general category (up to 25%).
* **Skill Upgradation and Mahila Coir Yojana:**
* Implements a skill development training program for women artisans in the Coir sector under Coir Vikas Yojana.
* **Procurement and Marketing Support Scheme:**
* Subsidizes the participation of women entrepreneurs in trade fairs to the extent of 100%, compared to 80% for other entrepreneurs.
* **PM Vishwakarma Scheme:**
* Launched on September 17, 2023, to provide benefits to traditional artisans and craftspeople, including women in 18 trades.
* **Yashasvini Awareness Campaign:**
* Launched to create awareness of government schemes among current and potential women entrepreneurs to provide handholding and capacity building support.
* **Pradhan Mantri Mudra Yojana (PMMY) Data (FY 2015-16 to FY 2024-25):**
* Total accounts: 53.31 crore, with Rs. 33.63 lakh crore disbursed.
* Women entrepreneur accounts: 35.76 crore (67%), with Rs. 14.46 lakh crore disbursed (43%).
**Impact Analysis**
**Women-Led MSMEs**
* **Impact:** Enhanced access to credit through guarantee schemes, procurement opportunities, subsidized training, and awareness campaigns.
* **Action Required:** Leverage available schemes and policies to expand their businesses and improve their skills.
**Central Public Sector Enterprises (CPSEs)/Ministries/Departments**
* **Impact:** Requirement to allocate at least 3% of annual procurement to women-led MSMEs.
* **Action Required:** Adjust procurement policies to meet the mandated allocation and identify suitable women-led MSMEs.
**Traditional Artisans and Craftspeople (including Women)**
* **Impact:** Access to a range of benefits through the PM Vishwakarma Scheme.
* **Action Required:** Participate in the PM Vishwakarma Scheme.
**Scheduled Banks and Non-Banking Financial Companies (NBFCs)**
* **Impact:** Collaboration encouraged to improve credit flow to women entrepreneurs.
* **Action Required:** Collaborate with the Government to enhance formal credit flow to women entrepreneurs.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises (MSME): The central government ministry primarily responsible for formulating policies and programs related to micro, small, and medium enterprises in India.
Pradhan Mantri Mudra Yojana (PMMY): A scheme to provide funding to non-corporate small business sector through various last mile financial institutions like Banks, NBFCs and MFIs.
Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs): A scheme providing credit guarantees for loans extended to micro and small enterprises.
Prime Minister's Employment Generation Programme (PMEGP): A credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises.
PM Vishwakarma Scheme: A scheme to provide benefits to traditional artisans and craftspeople.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 1908
TO BE ANSWERED ON: 11.12.2025
CREDIT GAP AMONG WOMEN-LED MSMEs
1908. DR. PRABHA MALLIKARJUN:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government has undertaken any assessment of the credit gap among women-led
Micro, Small and Medium Enterprises (MSMEs), currently estimated at Rupees 1.37 lakh crore and if
so, the details thereof including the reasons for this persistent disparity;
(b) the number of Pradhan Mantri Mudra Yojana (PMMY) accounts held by women entrepreneurs
and the percentage share of total credit disbursed as of March 2025; and
(c) the specific steps being taken to ensure parity in disbursement and credit-guarantee coverage
for women-owned enterprises, including collaboration with scheduled banks and Non-Banking
Financial Companies (NBFCs) to enhance formal credit flow to women entrepreneurs?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (c): The Government has taken a number of initiatives to ensure disbursement and credit-
guarantee coverage for women-owned enterprises as below:
i. The Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) provides credit
guarantees for the loans extended to the MSEs without any collateral security and third-party
guarantee including credit guarantee coverage of 90% for loans extended to women led MSEs
against 75% in general with 10% relaxation in guarantee fee.
ii. To support women entrepreneurs, the Public Procurement Policy mandates at least 3% of their
annual procurement from women led MSEs by Central Public Sector Enterprises (CPSEs)
/Ministries/Departments.
iii. Ministry of MSME implements Prime Minister’s Employment Generation Programme
(PMEGP) which is a credit-linked subsidy programme aimed at generating self-employment
opportunities through establishment of micro-enterprises in the non-farm sector by helping
traditional artisans and rural/urban unemployed youth. Out of the total PMEGP beneficiaries,
39% are women and they are provided higher subsidy (35%) vis-a-vis general category of
micro enterprises (upto 25%).
iv. To encourage entrepreneurship among women, Ministry of MSME implements ‘Skill
Upgradation and Mahila Coir Yojana’ under Coir Vikas Yojana, which is an exclusive
training programme aimed at skill development of women artisans engaged in the Coir sector.: 2 :
v. Participation of women entrepreneurs in trade fairs under Procurement and Marketing Support
Scheme is subsidized to the extent of 100% vis-a-vis 80% for other entrepreneurs.
vi. Ministry of MSME has launched ‘PM Vishwakarma’ Scheme on 17.09.2023, to provide a
number of benefits to the traditional artisans and craftspeople including women, engaged in
18 trades.
vii. The Ministry has launched awareness campaign ‘Yashasvini’ to create awareness about its
schemes among existing and prospective women entrepreneurs to provide continuum of
handholding and capacity building support.
As reported, the number of accounts held by women entrepreneurs and the percentage share of
total credit disbursed under Pradhan Mantri Mudra Yojana (PMMY) from FY 2015-16 to FY 2024-25
are as under:
Particulars Number of loan Amount of loan amount
accounts disbursed
All accounts (Cumulative) 53.31 crore Rs. 33.63 lakh crore
Women Entrepreneurs 35.76 crore Rs. 14.46 lakh crore
(67%) (43%)
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