Home India MICRO, SMALL AND MEDIUM ENTERPRISES Parliament Question: MSME Credit Disbursement in Tamil Nadu...
Date: 2026-01-29 Category: Not Applicable State: Union Government Country: India

Parliament Question: MSME Credit Disbursement in Tamil Nadu

Issued by MICRO, SMALL AND MEDIUM ENTERPRISES · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document presents the Government of India's response to Lok Sabha Unstarred Question No. 141, concerning MSME credit disbursement in Tamil Nadu. The information includes district-wise credit disbursement for the last three financial years, the number of MSMEs benefited through the Credit Guarantee Scheme (CGS), and the non-performing assets ratio of MSME loans in Tamil Nadu. The answer was due on 29.01.2026. **Key Points / Main Content** * **Credit Disbursement:** * District-wise credit disbursement to MSMEs in Tamil Nadu under priority sector lending by scheduled commercial banks during the last three financial years (as on March 31, 2023, 2024, and 2025) is detailed in Annexure I. * The total credit disbursed as of March 31st is: * 2023: 21,84,514 A/c for Rs. 1,80,310 crore * 2024: 18,41,589 A/c for Rs. 2,29,544 crore * 2025: 12,11,874 A/c for Rs. 2,54,851 crore * **Credit Guarantee Scheme (CGS):** * Since the inception of the Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) in 2000 until 31.12.2025, a total of 1.35 crore credit guarantees amounting to Rs. 12.39 lakh crore have been approved to Micro and Small Enterprises. * **Non-Performing Assets (NPA) Ratio:** * The non-performing assets ratio of MSME loans in Tamil Nadu, as informed by the State Level Bankers Committee (SLBC), is 3.63%. **Impact Analysis** **Stakeholder: Micro, Small, and Medium Enterprises (MSMEs) in Tamil Nadu** * **Impact:** MSMEs in Tamil Nadu are impacted by the availability of credit under priority sector lending, the Credit Guarantee Scheme, and the overall health of MSME loan portfolios in the state. * **Action Required:** MSMEs should review the district-wise disbursement data to understand credit availability in their specific regions. MSMEs should leverage the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises to secure the credit guarantee. MSMEs should manage their loan portfolios to reduce the NPA. **Stakeholder: Scheduled Commercial Banks** * **Impact:** Scheduled commercial banks are required to disburse credit to MSMEs under priority sector lending. * **Action Required:** Banks must review the district-wise disbursement data to meet priority sector lending targets. Banks should promote the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises. Banks should manage their loan portfolios to reduce the NPA. **Stakeholder: State Level Bankers Committee (SLBC), Tamil Nadu** * **Impact:** SLBC provides information on the non-performing assets ratio of MSME loans in Tamil Nadu. * **Action Required:** SLBC should monitor the NPA ratios of MSME loans in Tamil Nadu and inform the government of MSMEs credit performance. **Stakeholder: Government of India (Ministry of MSME)** * **Impact:** The government provides responses to the state about MSME credit disbursement. * **Action Required:** Government should monitor and review MSME credit disbursement based on the collected data from stakeholders.

Key Entities Referenced

Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs): A scheme providing credit guarantees to Micro and Small Enterprises (MSEs). Tamil Nadu: The Indian state where MSME credit disbursement is analyzed in this policy. Micro, Small and Medium Enterprises (MSMEs): The types of businesses that this policy is focused on. State Level Bankers Committee (SLBC): The organization that provides information on non-performing assets ratio of MSME loans in Tamil Nadu. Priority sector lending: Category of lending under which the credit disbursed to MSMEs in Tamil Nadu is provided.
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GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION NO. 141 TO BE ANSWERED ON: 29.01.2026 MSME CREDIT DISBURSEMENT IN TAMIL NADU 141. THIRU ARUN NEHRU: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) the total credit disbursed to Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu under priority sector lending during the last three financial years, district and year-wise; (b) the number of MSMEs benefited through Credit Guarantee Fund Trust for Micro and Small Enterprises; and (c) the non-performing assets ratio of MSME loans in Tamil Nadu ? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a): The district-wise total credit disbursed to Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu under Priority sector lending by scheduled commercial banks during the last three financial years, is at annexure I. (b): Since inception of Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) in 2000, till 31.12.2025, a total of 1.35 crore credit guarantees amounting to Rs. 12.39 lakh crore have been approved to Micro and Small Enterprises. (c): As informed by State Level Bankers Committee (SLBC), Tamil Nadu, the non-performing assets ratio of MSME loans in Tamil Nadu is 3.63%. *****Annexure I Annexure referred in part (a) of answer to Lok Sabha Unstarred Question No. 141 on ‘MSME Credit Disbursement in Tamil Nadu’ due for reply on 29.01.2026. (A/c. in Number & Amt. in Rs.Crore) District wise credit disbursement in state of Tamil Nadu during Last 3 years Sr. As on 31.03.2023 As on 31.03.2024 As on 31.03.2025 District No. A/c Amt. A/c Amt. A/c Amt. 1 Ariyalur 11,426 325 6,355 308 3,933 287 2 Chengalpattu 87,136 2,967 88,785 4,000 54,505 4,821 3 Chennai 7,68,876 69,760 4,15,330 88,115 1,74,279 95,064 4 Coimbatore 80,271 21,002 1,09,708 28,377 99,509 32,490 5 Cuddalore 37,094 1,373 40,819 1,824 26,583 2,058 6 Dharmapuri 18,610 977 17,193 1,302 15,656 1,463 7 Dindigul 41,766 2,479 40,665 2,693 30,346 3,037 8 Erode 37,436 5,724 42,750 7,735 37,965 8,745 9 Kallakurichi 16,192 513 13,346 632 9,311 719 10 Kanchipuram 42,354 3,293 44,326 4,449 31,296 5,365 11 Kanniyakumari 51,674 2,219 47,272 2,543 26,184 2,745 12 Karur 16,104 1,808 18,512 3,261 13,733 3,643 13 Krishnagiri 32,816 3,872 31,314 4,523 30,427 5,461 14 Madurai 77,061 6,135 76,961 8,768 71,970 10,014 15 Mayiladuthurai 25,179 435 17,331 502 8,521 528 16 Nagapattinam 12,993 319 11,627 369 5,446 470 17 Namakkal 28,439 4,224 37,467 5,366 26,891 5,670 18 Perambalur 13,290 355 8,593 498 4,445 530 19 Pudukkottai 37,762 849 30,881 1,076 16,038 1,145 20 Ramanathapuram 32,473 654 24,712 729 16,928 851 21 Ranipet 13,635 1,224 14,407 1,302 9,925 1,539 22 Salem 59,448 6,469 66,447 8,289 62,895 9,499 23 Sivaganga 36,337 893 35,436 1,201 17,045 1,218 24 Tenkasi 38,124 1,336 37,658 1,552 19,556 1,427 25 Thanjavur 36,455 2,118 40,336 2,737 29,493 2,830 26 The Nilgiris 7,117 324 11,479 376 7,049 403 27 Theni 19,738 1,012 20,736 1,626 15,077 1,571 28 Thiruvallur 1,09,185 5,181 97,626 5,046 70,424 5,150 29 Thiruvarur 19,807 688 16,205 824 10,092 774 30 Tiruchirappalli 62,920 3,710 77,597 4,992 43,242 5,427 31 Tirunelveli 46,252 1,688 38,959 1,965 28,134 2,411 32 Tirupattur 11,197 727 17,782 633 10,811 768 33 Tiruppur 44,735 13,800 59,330 17,906 52,143 21,317 34 Tiruvannamalai 50,378 1,411 43,140 1,773 25,509 1,703 35 Toothukudi 53,659 3,351 43,580 3,894 33,091 4,706 36 Vellore 30,844 1,548 36,194 1,989 21,948 2,222 37 Villupuram 34,616 977 24,632 1,157 16,931 1,305 38 Virudhunagar 41,115 4,571 36,098 5,215 34,543 5,476 Total 21,84,514 1,80,310 18,41,589 2,29,544 12,11,874 2,54,851 Source: SLBC Tamil Nadu

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