**Summary:**
Lok Sabha Unstarred Question No. 882, addressed to the Minister of Micro, Small and Medium Enterprises (MSME) on July 24, 2025, concerns the repayment of loans to MSMEs. Specifically, the question inquired about proposals received by the government from MSMEs requesting an extension beyond the 45-day repayment period for dues, and whether the government is considering such an extension.
The Minister of State for MSME, Sushri Shobha Karandlaje, responded that the Ministry has received feedback from various stakeholders, including MSME associations, regarding the existing 45-day payment timeline. While most stakeholders acknowledge the benefits of timely payments for Micro and Small Enterprises, those with longer payment cycles have requested the Ministry to consider extending the implementation timeline of the amendment. The Ministry of MSME has held stakeholder consultations on this issue to gather feedback.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India.
Lok Sabha: The lower house of the Parliament of India.
SHRI HARIBHAI PATEL: Member of Parliament who asked the question related to repayment of loans for MSMEs.
Micro, Small and Medium Enterprises (MSMEs): Enterprises classified based on investment and turnover, crucial for economic growth and employment in India.
SUSHRI SHOBHA KARANDLAJE: Minister of State for Micro, Small and Medium Enterprises, who provided the answer to the question.
MSME associations: Groups or organizations representing the interests of Micro, Small, and Medium Enterprises.
delayed payments: Issue related to payments that are not made within the agreed-upon timeframe, impacting the cash flow of MSMEs.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 882
TO BE ANSWERED ON 24.07.2025
REPAYMENT OF LOANS
882. SHRI HARIBHAI PATEL:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government has received proposals from persons engaged in businesses under
Micro, Small and Medium Enterprises (MSMEs) for allowing more than 45 days for repayment of dues,
if so, the details thereof;
(b) whether the Government is considering allowing more than 45 days time for repayment of dues,
if so, the details thereof; and
(c) the time by which it is likely to be done by the Government?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (c): A number of stakeholders, including MSME associations have endorsed the intervention
introduced to ensure timely payments as being beneficial to the Micro and Small Enterprises, which
were grappling with the issue of delayed payments, cash flow and the risk of business getting closed due
to financial constraints.
The Ministry of MSME held stakeholders’ consultation on this issue. While most of
stakeholders have lauded the initiative, those with payment cycles longer than 45 days sought for
consideration of extending the time line for implementation of the amendment.
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