Parliament Question: Credit Guarantee Fund Trust for Micro and Small Enterprises

GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION NO. 1899 TO BE ANSWERED ON: 30-07-2026 CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES 1899. SHRI TEJASVI SURYA: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) the steps taken to strengthen the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in line with recent Micro, Small and Medium Enterprises (MSMEs) financing reforms, including its integration with the Trade Receivables Discounting System (TReDS), digital lending platforms and fintech-based credit delivery; (b) the implementation challenges identified in extending collateral-free credit to MSMEs, including issues relating to credit guarantee coverage, lender participation and regional disparities; (c) the steps taken to improve loan sanction timelines, simplify claim settlement processes and enhance credit flow to MSMEs under the scheme; and (d) the details of CGTMSE-supported loans sanctioned and guaranteed during the last three years and the current year, State-wise including the number and value of loans sanctioned in Karnataka, particularly in Bengaluru? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a) to (c): Ministry of Micro, Small and Medium Enterprises (MSME) implements Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide credit guarantee for loans extended by Member Lending Institutions to new as well as existing MSEs. To expand the scope of the CGS and to ensure greater access to credit for MSEs, a number of measures have been taken which inter-alia include: i. The guarantee ceiling for the loan extended under CGS has been enhanced from Rs. 5 crore to Rs. 10 crore w.e.f 01.04.2025. ii. Annual Guarantee Fees (AGF) structure has been revised with 50% reduction in standard rate to as low as 0.37% per annum. iii. The claim process under CGTMSE has been simplified. Claims outstanding up to ₹10 lakh are settled through a system-based Business Rule Engine without any manual intervention. Claims above ₹10 lakh are also lodged on the CGTMSE portal and are processed online.: 2 : iv. Further, as informed by CGTMSE, Circular No. 262 dated 15.06.2026, regarding guarantee on credit facilities for invoice discounting on Trade Receivables Discounting System (TReDS) platforms has been issued. CGTMSE has also developed the necessary APIs for integration with TReDS platform to facilitate its implementation. v. As informed by Reserve Bank of India (RBI), banks have been advised to streamline MSE lending policies by providing additional working capital, mid-term review of working capital limits, and defined credit decision timelines to ensure timely and adequate credit during the business life cycle, especially in unforeseen circumstances. vi. As per RBI’s Master Direction - Lending to Micro, Small & Medium Enterprises (MSME) Sector dated 09.02.2026, the limit for collateral free loan by Scheduled Commercial Banks to MSE units has been enhanced from Rs 10 lakh to Rs 20 lakh. vii. As informed by RBI, for loans up to ₹25 lakh to MSEs, banks are advised that the timelines for credit decisions shall not be more than 14 working days. For loans above the aforementioned limit, timelines shall be as per the Board approved norms. (d): The State-wise details of the guarantees extended to MSEs under CGS during the last three years and the current year are provided at Annexure. The details of the guarantees extended to MSEs under CGS, in Bengaluru are as below: CGS - Guarantees approved FY 2026-27 (till FY 2023-24 FY 2024-25 FY 2025-26 30.06.2026) No. of Amount No. of Amount No. of Amount No. of Amount guarantees approved guarantees approved guarantees approved guarantees approved approved (In Rs. approved (In Rs. approved (In Rs. approved (In Rs. Crore) Crore) Crore) Crore) 36,549 6,938 80,361 12,829 47,900 15,821 8,015 3,500 ****Annexure Annexure referred in part (d) of answer to Lok Sabha Unstarred Question no. 1899 on “Credit Guarantee Fund Trust for Micro and Small Enterprises” due for reply on 30.07.2026. CGTMSE - Guarantee approved – State-wise Amt. (₹ Crore) FY 2026-27 (till FY 2023-24 FY 2024-25 FY 2025-26 30.06.2026) No. of Amount No. of Amount No. of Amount No. of Amount S. States / UTs guarantees approved guarantees approved guarantees approved guarantees approved N. approved approved approved approved Andaman & 1 Nicobar Islands 600 128 655 142 976 198 249 52 2 Andhra Pradesh 79,938 5,395 1,10,323 8,189 1,39,299 14,259 28,792 3,323 Arunachal 3 Pradesh 981 198 1,707 352 1,942 632 727 142 4 Assam 34,556 3,750 75,747 6,436 49,337 8,019 8,921 1,558 5 Bihar 1,13,262 8,582 2,21,458 14,120 1,56,823 16,265 29,614 3,547 6 Chandigarh 2,459 604 17,401 2,711 6,838 1,731 644 217 7 Chhattisgarh 25,845 2,968 40,583 4,231 39,465 6,661 7,023 1,659 8 Delhi 35,127 8,527 55,120 12,824 61,686 17,995 10,028 4,014 9 Goa 4,947 611 6,510 857 5,439 995 1,110 241 10 Gujarat 1,06,073 19,668 1,10,039 25,335 1,35,529 40,110 24,966 10,591 11 Haryana 48,455 8,553 75,244 10,865 73,035 15,549 14,103 3,939 Himachal 12 Pradesh 20,600 2,080 23,750 2,411 27,417 3,325 5,840 869 Jammu And 13 Kashmir 53,295 2,415 47,201 2,816 48,736 3,633 21,169 1,493 14 Jharkhand 34,800 4,432 64,614 6,494 59,748 8,130 14,331 1,899 15 Karnataka 1,35,959 14,016 1,88,144 21,453 1,48,355 28,673 27,502 6,444 16 Kerala 45,515 4,590 68,755 7,693 72,725 11,255 15,229 2,466 17 Ladakh 637 84 709 98 577 116 291 48 18 Lakshadweep 7 1 23 2 51 2 16 1 19 Madhya Pradesh 75,023 9,569 1,31,490 14,213 1,07,460 18,863 19,706 4,268 20 Maharashtra 1,29,892 23,359 2,38,128 39,989 2,49,969 59,178 45,882 12,702 21 Manipur 1,580 111 1,952 181 2,882 343 1,107 119 22 Meghalaya 1,693 252 2,776 328 3,122 530 731 164 23 Mizoram 1,232 73 1,472 134 2,581 286 807 83 24 Nagaland 1,563 160 1,804 230 1,977 305 693 99 25 Odisha 56,392 6,109 94,128 9,684 81,988 13,517 16,614 3,218 26 Puducherry 2,418 233 4,471 332 3,266 502 468 88 27 Punjab 81,259 9,632 88,991 10,406 79,971 13,263 14,960 3,396 28 Rajasthan 85,848 9,180 1,20,424 13,865 1,22,758 21,308 21,211 5,422 29 Sikkim 1,108 102 1,748 165 1,336 210 254 34 30 Tamil Nadu 1,13,815 15,061 1,79,817 21,447 1,53,804 30,072 28,747 6,816 31 Telangana 41,940 6,368 97,292 11,586 91,059 18,801 16,265 4,463 Dadra & Nagar Haveli and 1039 277 32 Daman & Diu 1,025 315 1,458 466 262 108 33 Tripura 6,523 381 8,398 570 12,018 1,042 2,953 282 34 Uttar Pradesh 2,47,258 21,200 4,03,938 32,790 5,46,792 46,876 1,07,951 11,229 35 Uttarakhand 26,361 2,253 26,268 2,776 28,458 4,230 5,468 979 36 West Bengal 1,06,073 11,887 2,03,170 19,465 1,57,912 25,207 23,953 5,711 TOTAL 17,24,073 2,02,807 27,15,275 3,05,507 26,76,789 4,32,547 5,18,587 1,01,687