Home India MICRO, SMALL AND MEDIUM ENTERPRISES Parliament Question: Financial Support and Credit Facilitati...
Date: 2026-01-29 Category: Not Applicable State: Union Government Country: India

Parliament Question: Financial Support and Credit Facilitation

Issued by MICRO, SMALL AND MEDIUM ENTERPRISES · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is a response to Lok Sabha Unstarred Question No. 195 regarding financial support and credit facilitation for Micro, Small, and Medium Enterprises (MSMEs) as of January 29, 2026. It details the credit guarantees approved under various schemes, including the Credit Guarantee Scheme (CGS) and the Mutual Credit Guarantee Scheme (MCGS-MSME), and the Pradhan Mantri Mudra Yojana (PMMY). The response includes data up to December 31, 2025, for credit guarantees and January 2, 2026, for PMMY, along with details for specific regions and states. **Key Points / Main Content** * **Credit Guarantee Scheme (CGS):** * Provides state-wise details of credit guarantees approved for Micro and Small Enterprises (MSEs) up to December 31, 2025. * Includes specific details for Odisha, including Nabarangpur Lok Sabha Constituency and Cuttack District, as per Annexure-II. * **Mutual Credit Guarantee Scheme (MCGS-MSME):** * Introduced in January 2025. * Offers credit guarantee cover to lenders for term loans up to Rs. 100 crore for MSME projects involving equipment/machinery purchase. * As of December 31, 2025, 23 loans amounting to Rs 173.39 crore have been guaranteed. * No guarantees have been issued in Odisha under this scheme yet. * **Pradhan Mantri Mudra Yojana (PMMY):** * Launched on April 8, 2015. * As of January 2, 2026, a total of Rs. 38.18 lakh crore have been sanctioned. * Rs. 4,666.21 crore sanctioned in Pali District, Rajasthan. * District-wise details of amount sanctioned in Odisha as of January 2, 2026, are provided in Annexure-III. * **Collateral-Free Credit Access:** * Banks are mandated not to accept collateral security for loans up to Rs. 10 lakhs to MSEs. * **Awareness Campaigns:** * Ministry of MSME regularly conducts awareness campaigns for Government schemes and programmes. * These campaigns are carried out in coordination with MSME/Industry Departments of States/UTs. * Methods include physical workshops, social media, print media, and electronic media. **Impact Analysis** **Stakeholder: MSMEs** * **Impact:** MSMEs are provided with access to credit guarantees and loans to support their projects and growth. * **Action Required:** MSMEs should take advantage of the schemes and awareness campaigns to access the financial support available to them. **Stakeholder: Lenders (Scheduled Commercial Banks, All India Financial Institutions, NBFCs)** * **Impact:** Lenders are provided with credit guarantee cover for their loans to MSMEs, encouraging them to lend to the sector. * **Action Required:** Lenders should implement the MCGS-MSME and other relevant schemes to support MSMEs and ensure collateral-free lending up to Rs. 10 lakhs. **Stakeholder: Government (Ministry of MSME, Department of Financial Services, Reserve Bank of India)** * **Impact:** Government is responsible for implementing and monitoring the effectiveness of the credit guarantee and loan schemes. * **Action Required:** Continue to organize awareness campaigns and ensure the effective implementation of schemes for MSMEs. Monitor the impact of these schemes, particularly in regions like Odisha. **Stakeholder: Regions and States** * **Impact:** The schemes impact the financial health and growth of MSMEs in various regions and states, including Odisha, Nabarangpur, and Cuttack. * **Action Required:** State and district administrations should collaborate with the Ministry of MSME to promote and facilitate the use of these schemes by local MSMEs.

Key Entities Referenced

Pradhan Mantri Mudra Yojana (PMMY): A scheme to provide funding to non-corporate, non-farm small and micro enterprises. Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME): A scheme introduced in January 2025 to provide credit guarantee cover to lenders for term loans up to Rs.100 crore to MSMEs. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGFTMSE): A scheme providing credit guarantees to MSEs. Reserve Bank of India (RBI): The central bank of India, whose master direction mandates banks not to accept collateral security for loans up to Rs. 10 lakhs to units in the MSE sector. Odisha: Indian state specifically mentioned for district-wise sanctioned amounts.
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GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION NO. 195 TO BE ANSWERED ON 29-01-2026 FINANCIAL SUPPORT AND CREDIT FACILITATION 195. SHRI JANARDAN SINGH SIGRIWAL: SHRI VISHWESHWAR HEGDE KAGERI: SHRI SHASHANK MANI: SHRI PRADEEP PUROHIT: SMT. MAHIMA KUMARI MEWAR: SHRI P P CHAUDHARY: SHRI BALABHADRA MAJHI: DR. SANJAY JAISWAL: SHRI BHARTRUHARI MAHTAB: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) the details of credit guarantees approved under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGFTMSE) during the year 2025, including the enhanced coverage ceiling and special provisions for various categories, State-wise including in Nabarangpur Lok Sabha Constituency and Cuttack district of Odisha; (b) the progress made under the Mutual Credit Guarantee Scheme for MSMEs announced in January 2025, Sector-wise and the impact of the said scheme on Micro, Small and Medium Enterprises (MSMEs), particularly in Cuttack and in Nabarangpur Lok Sabha Constituency of Odisha; (c) the cumulative total amount of loans sanctioned under Pradhan Mantri Mudra Yojana (PMMY) since its inception and its achievements thereof, particularly to non-corporate, non-farm MSME registered in Pali, Rajasthan, district-wise in Odisha including Cuttack and Nabarangpur Lok Sabha Constituencies; and (d) the steps being taken to enhance collateral-free credit access for MSMEs? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a): The State-wise details of credit guarantees approved under Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) during FY 2025-26 till 31.12.2025 are at Annexure-I. The details of credit guarantees approved in Odisha including in Nabarangpur Lok Sabha Constituency and Cuttack District are at Annexure-II. (b): As informed by Department of Financial Services (DFS), Mutual Credit Guarantee Scheme for MSMES (MCGS-MSME) was introduced in January 2025. The Scheme provides credit guarantee cover to lenders (Scheduled Commercial Banks, All India Financial Institutions, NBFCs) for their term loans up to Rs.100 crore to MSMEs for their projects involving purchase of equipment/machinery. As on 31.12.2025, 23 loans amounting to Rs 173.39 crore have been guaranteed under the scheme. Further, DFS has informed that, since Scheme was launched recently, no guarantees have been issued in state of Odisha under MCGS-MSME.: 2 : (c): As informed by DFS, Pradhan Mantri Mudra Yojana (PMMY) was launched on 08.04.2015. As on 02.01.2026, a total of Rs. 38.18 lakh crore have been sanctioned under PMMY, since inception. Out of which, Rs.4,666.21 crore have been sanctioned in Pali District in the State of Rajasthan. The district-wise details of amount sanctioned in Odisha are at Annexure-III. (d): As informed by Reserve Bank of India (RBI), in terms of para 4.1 of RBI Master Direction dated July 24, 2017 (Updated as on July 23, 2025) on 'Lending to Micro, Small & Medium Enterprises (MSME) Sector', banks are mandated not to accept collateral security in the case of loans up to Rs. 10 lakhs extended to units in the MSE sector. In addition, Ministry of MSME through its field offices regularly organizes awareness campaigns for Government schemes /programmes, 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 stake holders. *****Annexure-I Annexure referred in part (a) of answer to Lok Sabha Unstarred Question no. 195 on “Financial Support and Credit Facilitation” due for reply on 29.01.2026. CGTMSE - GUARANTEE APPROVED FY 2025-26 Till December 31, 2025 No. of Amount Sr. guarantees Approved in Rs. No. STATEs / UTs approved crore 1 Andaman And Nicobar Islands 699 143 2 Andhra Pradesh 94,709 9,820 3 Arunachal Pradesh 1,407 434 4 Assam 34,577 5,775 5 Bihar 1,16,301 11,576 6 Chandigarh 6,024 1,494 7 Chhattisgarh 27,210 4,374 8 Delhi 43,781 12,646 9 Goa 3,320 645 10 Gujarat 84,209 26,776 11 Haryana 53,117 10,879 12 Himachal Pradesh 21,058 2,437 13 Jammu And Kashmir 32,165 2,501 14 Jharkhand 43,008 5,828 15 Karnataka 1,09,580 20,155 16 Kerala 54,558 8,071 17 Ladakh 451 87 18 Lakshadweep 45 2 19 Madhya Pradesh 77,861 13,203 20 Maharashtra 1,82,220 41,500 21 Manipur 1,929 220 22 Meghalaya 2,200 382 23 Mizoram 1,472 172 24 Nagaland 1,446 218 25 Odisha 60,138 9,694 26 Puducherry 2,361 359 27 Punjab 59,662 9,536 28 Rajasthan 90,019 14,526 29 Sikkim 1,072 170 30 Tamil Nadu 1,13,564 21,521 31 Telangana 65,459 12,988 The Dadra And Nagar Haveli And Daman 32 And Diu 1,010 317 33 Tripura 7,930 676 34 Uttar Pradesh 3,99,404 33,244 35 Uttarakhand 22,061 3,072 36 West Bengal 1,24,814 18,450 TOTAL 19,40,841 3,03,890Annexure-II Annexure referred in part (a) of answer to Lok Sabha Unstarred Question no. 195 on “Financial Support and Credit Facilitation” due for reply on 29.01.2026. CGTMSE - Guarantee Approved FY 2025-26 till December 31, 2025 District No. of guarantees approved Amount Approved in Rs. crore Nabrangpur 562 93 Koraput 1259 187 Malkangiri 254 42 Cuttack 5623 1106Annexure-III Annexure referred in part (c) of answer to Lok Sabha Unstarred Question no. 195 on “Financial Support and Credit Facilitation” due for reply on 29.01.2026. Pradhan Mantri Mudra Yojana (PMMY) District-wise Report –Cumulative (As on 02.01.2026*) (Amount in Rs. Crore) S. No. State/ District Name Sanctioned Amount Odisha 1 Angul 5,254.26 2 Balangir 5,807.49 3 Baleshwar 8,153.18 4 Bargarh 5,357.81 5 Bhadrak 7,385.32 6 Boudh 1,553.70 7 Cuttack 12,354.37 8 Debagarh 789.89 9 Dhenkanal 4,432.05 10 Gajapati 1,101.40 11 Ganjam 12,832.92 12 Jagatsinghpur 5,048.02 13 Jajpur 7,147.69 14 Jharsuguda 2,875.66 15 Kalahandi 3,946.34 16 Kandhamal 1,672.56 17 Kendrapara 2,783.31 18 Kendujhar 4,915.74 19 Khordha 19,153.33 20 Koraput 3,192.90 21 Malkangiri 1,309.67 22 Mayurbhanj 7,744.06 23 Nabarangpur 2,063.79 24 Nayagarh 4,243.92 25 Nuapada 1,814.63 26 Puri 7,316.12 27 Rayagada 2,508.15 28 Sambalpur 4,996.91 29 Subarnapur 2,753.21 30 Sundargarh 6,791.85 31 Other # 15,626.07 Total 1,72,926.32 *Provisional #District-wise data for FY 2015-16 and some of the NBFCs/ MFIs is not available Source: As per data uploaded by Member Lending Institutions on Mudra Portal

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