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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
STARRED QUESTION NO. *303
ANSWERED ON MONDAY, 10th AUGUST, 2026/ 19 SHRAVANA, 1948 (SAKA)
Special Credit Package for MSMEs
*303. SHRI ZIA UR REHMAN:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government proposes to provide financial assistance or a special credit package for
MSMEs and handicraft industries in Western Uttar Pradesh, particularly brass, horn and handicraft
units;
(b) if so, the details thereof; and
(c) the expected beneficiaries of the said package?
ANSWER
THE FINANCE MINISTER
(SMT. NIRMALA SITHARAMAN)
(a) to (c) A Statement is laid on the Table of the House.
*****STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (c) OF LOK SABHA
STARRED QUESTION NO. *303 ANSWERED ON 10th AUGUST, 2026, REGARDING
‘SPECIAL CREDIT PACKAGE FOR MSMES’ BY SHRI ZIA UR REHMAN, HON’BLE
MEMBER OF PARLIAMENT
(a) to (c) The Government of India has already undertaken various initiatives to improve credit flow
to MSMEs across the country which covers handicraft industries in western Uttar Pradesh. Some of
the major schemes are as follows:
i. Pradhan Mantri Mudra Yojana (PMMY), launched on 8.4.2015, currently extends collateral
free credit up to ₹20 lakh to micro enterprises. Any individual, who is otherwise eligible to take
a loan and has a business plan for small business enterprise can avail loan under the Scheme
for income generating activities in the manufacturing, trading, service sectors including
activities allied to agriculture. In the state of Uttar Pradesh (UP), as on 26.06.2026, since
inception, 6.02 crore loans amounting to ₹4.13 lakh crore have been extended of which ₹1.48
lakh crore (36%) disbursement is towards women beneficiaries.
ii. The PM Vishwakarma Scheme, launched by the Ministry of MSME on 17.9.2023, provides
end-to-end support, including collateral-free credit, to artisans and craftspeople engaged in 18
identified trades who work with their hands and tools. The Scheme, inter alia, provides
collateral-free Enterprise Development Loans of up to ₹3 lakh in two tranches—₹1 lakh (with
a tenure of 18 months) and ₹2 lakh (with a tenure of 30 months)—at a concessional interest
rate of 5%, with an interest subvention of 8% provided by the Government of India. 18
identified trades are: Carpenter, Boat Maker, Armourer, Metalsmith/Metal Caster, Hammer
and Tool Kit Maker, Locksmith, Goldsmith, Potter, Sculptor, Stone Breaker, Cobbler/Footwear
Artisan, Mason, Basket/Mat/Broom Maker/Coir Weaver, Traditional Doll and Toy Maker,
Barber, Garland Maker, Washerman, Tailor, Fishing Net Maker. In Uttar Pradesh, ₹129 crore
have been disbursed to 15304 beneficiaries under the scheme.
iii. The Ministry of Textiles launched two schemes viz., National Handicrafts Development
Programme (NHDP) and Comprehensive Handicrafts Cluster Development Scheme (CHCDS)
for overall development and promotion of handicrafts sector across the country.
Under these schemes, need-based financial assistance is provided for end-to-end support to the
artisans through marketing events, skill development, cluster development, formation of
Producer Companies, direct benefit to artisans, infrastructural and technology support, research
and development support, digitization, branding and marketing of handicraft products indomestic & international markets etc. which benefit the traditional crafts and increase
livelihood opportunities throughout the country including the state of Uttar Pradesh. During
FY 2025-26, under NHDP Scheme, an amount of ₹29.12 Crore has been sanctioned benefitting
10,616 artisans in Uttar Pradesh State. Under CHCDS Scheme which ended in 31.03.2026, an
amount of ₹6.25 Crore has been sanctioned in FY 2025-26, benefitting 1,510 artisans in Uttar
Pradesh State.
iv. Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) was launched by the
Ministry of MSME, Government of India, which provides guarantee coverage for credit
facilities extended to MSEs without the requirement of collateral security or third-party
guarantees. The Scheme is being implemented through the Credit Guarantee Fund Trust for
Micro and Small Enterprises (CGTMSE). In Uttar Pradesh, over 21 lakh guarantees amounting
to ₹1.58 lakh crores have been issued by CGTMSE as on 31.07.2026.
v. Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has been launched in May, 2026.
Under the scheme, MSMEs are eligible for additional credit up to 20% of the peak fund-based
working capital outstanding during the fourth quarter of FY 2025–26. The scheme provides
100% guarantee coverage to Member Lending Institutions (MLIs) towards the amount in
default for such additional credit facility extended to the eligible MSME borrowers. Under the
scheme, additional credit flow of ₹ 2,55,000 crore is envisaged for MSMEs, non-MSMEs and
scheduled passenger airlines. In Uttar Pradesh, ₹13139 crores have been disbursed to 55824
MSMEs as on 05.08.2026.
vi. Credit Guarantee Scheme for Exporters (CGSE) was launched on 01.12.2025 for providing
100% credit guarantee coverage to MLIs through NCGTC for extending additional credit
facilities upto ₹20,000 crore to eligible exporters, including MSMEs. The scheme ended on
31.3.2026. In Uttar Pradesh, ₹744.06 crores were disbursed to 364 exporters.
*****