**Executive Summary**
The document is a response to an unstarred question in Lok Sabha regarding the strengthening of credit and capital availability for Micro, Small, and Medium Enterprises (MSMEs). It outlines various government initiatives implemented to improve access to credit and equity for MSMEs, including the Emergency Credit Line Guarantee Scheme (ECLGS), Credit Guarantee Scheme (CGS), Self-Reliant India (SRI) Fund, Prime Minister's Employment Generation Programme, and PM Vishwakarma Scheme. The response includes data up to 30.11.2025 and specifies the operational period of some schemes until 31.03.2023.
**Key Points / Main Content**
* **Emergency Credit Line Guarantee Scheme (ECLGS):**
* Launched in May 2020 as part of the Aatmanirbhar Bharat Package.
* Supported eligible MSMEs and business enterprises facing disruption due to COVID-19.
* Operational until 31.03.2023.
* Extended 1.13 crore guarantees worth Rs. 2.42 lakh crore.
* **Credit Guarantee Scheme (CGS):**
* Implemented by the Ministry of MSME through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
* Provides credit guarantee for loans extended by Member Lending Institutions to new and existing MSEs without collateral security.
* Loans revised to upto Rs 10 crore w.e.f 01.04.2025.
* Revamped effective from 01.04.2023 with a corpus infusion of Rs. 9,000 crore.
* Standard Rate of the Annual Guarantee Fee (AGF) reduced by 50%, to as low as 0.37% per annum.
* Approved 1.31 crore credit guarantees worth Rs. 11.85 lakh crore since inception in 2000 till 30.11.2025.
* **Self-Reliant India (SRI) Fund:**
* Established to infuse Rs. 50,000 crore as equity funding in MSMEs.
* Includes Rs. 10,000 crore from the Government of India and Rs. 40,000 crore through Private Equity/Venture Capital Funds.
* Assisted 682 MSMEs with investments over Rs. 15,442 Crore since inception in 2021 till 30.11.2025.
* **Prime Minister's Employment Generation Programme:**
* Provides Margin Money subsidy up to 35%.
* Aims to set up new micro enterprises in the non-farm sector.
* Project cost limit of Rs. 50 lakh for Manufacturing and Rs. 20 lakh for Services enterprises.
* **PM Vishwakarma Scheme:**
* Launched on 17.09.2023 to provide holistic support to artisans and craftspeople of 18 traditional trades.
* Includes provision of loans up to Rs. 3 lakh with interest subvention of max upto 8%.
* **Monitoring and Assessment:**
* The Ministry of MSME conducts regular review meetings to track implementation and assess scheme performance.
* Stakeholder consultations are held for feedback and policy interventions.
* MSME dashboard integrated through API with major schemes has been launched.
**Impact Analysis**
**Stakeholder: MSMEs**
* **Impact:** Increased access to credit, equity, and financial support for operational liabilities and new ventures, potentially improving productivity and competitiveness.
* **Action Required:** MSMEs should explore and apply for relevant schemes such as ECLGS, CGS, SRI Fund, PM's Employment Generation Programme, and PM Vishwakarma Scheme.
**Stakeholder: Member Lending Institutions**
* **Impact:** Opportunity to extend credit to MSMEs with government guarantees and reduced collateral requirements.
* **Action Required:** Participate in schemes like ECLGS and CGS, revise lending practices, and comply with the scheme guidelines to facilitate MSME financing.
**Stakeholder: Artisans and Craftspeople**
* **Impact:** Receive holistic support and financial assistance under the PM Vishwakarma Scheme to enhance their skills and livelihoods.
* **Action Required:** Participate in the PM Vishwakarma Scheme to access training, financial support, and market linkages.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The primary ministry responsible for the schemes and policies discussed in the document.
Emergency Credit Line Guarantee Scheme (ECLGS): A scheme launched as part of the Aatmanirbhar Bharat Package to support MSMEs affected by COVID-19.
Credit Guarantee Scheme (CGS): Implemented through CGTMSE, provides credit guarantee for MSEs.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): Trust implementing the Credit Guarantee Scheme (CGS).
PM Vishwakarma Scheme: Scheme to provide support to artisans and craftspeople.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 1909
TO BE ANSWERED ON 11.12.2025
STRENGTHENING OF CREDIT AND CAPITAL AVAILABILITY FOR MSMEs
1909. SHRI HASMUKHBHAI SOMABHAI PATEL:
SHRI MITESH PATEL BAKABHAI:
SHRI VISHNU DAYAL RAM:
SHRI NARAYAN TATU RANE:
SMT. D K ARUNA:
SHRI RODMAL NAGAR:
DR. SANJAY JAISWAL:
SHRI CHANDRA PRAKASH JOSHI:
SHRI ASHISH DUBEY:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the details of the recently implemented reforms and financial schemes to strengthen access to
credit and equity, capital availability for Micro, Small and Medium Enterprises (MSMEs) including the
Aatmanirbhar Bharat Package and the Credit Guarantee Scheme;
(b) the quantum of additional credit enabled through the said mechanisms along with the number of
enterprises benefitted thereunder;
(c) the steps taken to expand guarantee coverage and promote collateral-free financing for micro
and small enterprises; and
(d) whether the Government has developed monitoring systems to assess the effectiveness of these
financial interventions in enhancing the productivity and competitiveness of MSMEs and if so, the
details thereof ?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (c): Government has taken various measures to strengthen access to credit and equity for
Micro, Small and Medium Enterprises (MSMEs) including the following: -
i. The Emergency Credit Line Guarantee Scheme (ECLGS) was launched in May, 2020 as part of
Aatmanirbhar Bharat Package to support eligible MSMEs and business enterprises in meeting
their operational liabilities due to disruption caused by COVID-19 pandemic. The Scheme was
operational till 31.03.2023. As reported by Department of Financial Services (DFS), under
ECLGS, since inception till 31.03.2023, total 1.13 crore guarantees covering a value of Rs.2.42
lakh crore have been extended to MSMEs.: 2 :
ii. Ministry of MSME implements Credit Guarantee Scheme (CGS) for MSEs through Credit
Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide credit guarantee
for loans (revised to loans upto Rs 10 crore w.e.f 01.04.2025) extended by Member Lending
Institutions to new as well as existing MSEs without collateral security and third-party
guarantee. To expand the scope of the Scheme and to ensure greater access to credit for MSEs,
CGS was revamped effective from 01.04.2023, following a corpus infusion of Rs. 9,000 crore
into CGTMSE. Further, the Standard Rate of the Annual Guarantee Fee (AGF) was reduced by
50%, to as low as 0.37% per annum. Since inception in 2000, to till 30.11.2025, 1.31 crore
credit guarantees were approved covering an amount Rs. 11.85 lakh crore.
iii. Self-Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 crore as equity funding in
MSMEs with a provision of Rs. 10,000 crore from the Government of India and Rs. 40,000
crore through Private Equity/Venture Capital Funds. Since inception in 2021 till 30.11.2025,
682 MSMEs have been assisted by way of investing more than Rs. 15,442 Crore.
iv. Prime Minister's Employment Generation Programme provides Margin Money subsidy upto
35%, for setting up of new micro enterprises, in the non-farm sector with project cost of Rs. 50
lakh for Manufacturing and Rs. 20 lakh for Services enterprises.
v. PM Vishwakarma Scheme was launched on 17.09.2023 to provide end-to-end holistic support
to artisans and craftspeople of 18 traditional trades who work with their hands and tools. The
Scheme includes provision of loans upto Rs. 3 lakh with interest subvention of max upto 8%.
(d): Ministry of MSME conducts regular review meetings to track the implementation and assess the
performance of its schemes. It also holds stakeholder consultations on regular basis for feedback and
necessary policy interventions as and when required. Recently, MSME dashboard integrated through
API with all the major schemes of the Ministry has been launched in this direction.
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