**Executive Summary**
The Ministry of Micro, Small & Medium Enterprises announced government initiatives to improve access to finance for MSMEs. These include increasing the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) ceiling, providing Margin Money subsidy under the Prime Minister's Employment Generation Programme (PMEGP), offering loans under PM Vishwakarma, and infusing equity funding through the Self Reliant India (SRI) Fund. The information was provided in a written reply in Lok Sabha on December 5, 2023.
**Key Points / Main Content**
* **Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE):**
* The guarantee ceiling has been increased from Rs. 5 Crore to Rs. 10 Crore.
* **Prime Minister's Employment Generation Programme (PMEGP):**
* Margin Money subsidy of up to 35% is provided for setting up new micro enterprises in the non-farm sector.
* Project cost limits: Rs. 50 Lakh for manufacturing enterprises, and Rs. 20 Lakh for service enterprises.
* **PM Vishwakarma Scheme:**
* Launched on 17.09.2023 to support artisans and craftspeople of 18 traditional trades.
* Loans of up to Rs. 3 Lakh are available with interest subvention of up to 8%.
* **Self Reliant India (SRI) Fund:**
* Rs. 50,000 Crore is to be infused as equity funding in MSMEs.
* Rs. 10,000 Crore from the Government of India and Rs. 40,000 Crore through Private Equity/Venture Capital Funds.
* **Other Measures:**
* Collateral-free credit to MSEs.
* Implementation of Trade Receivables Discounting System (TREDS).
* Mutual Credit Guarantee Scheme for projects requiring loans up to Rs. 100 Crore to procure machinery and equipment.
* Reduction in timelines for credit decisions by banks.
**Impact Analysis**
**MSMEs**
* **Impact:** Improved access to finance through increased credit guarantees, subsidies, loans, and equity funding.
* **Action Required:** Explore and apply for the various schemes and initiatives to avail the benefits.
**Artisans and Craftspeople**
* **Impact:** Access to loans with interest subvention and holistic support through the PM Vishwakarma scheme.
* **Action Required:** Apply for loans and support under the PM Vishwakarma scheme.
**Member Lending Institutions (MLIs)**
* **Impact:** Increased credit guarantee ceiling and access to credit guarantee schemes.
* **Action Required:** Extend loans to MSEs under the Credit Guarantee Scheme (CGS), without requiring collateral security or third-party guarantees.
Key Entities Referenced
Ministry of Micro, Small & Medium Enterprises: The ministry responsible for formulating policies and programs to promote and develop the MSME sector.
Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE): Scheme providing credit guarantees to lending institutions for loans extended to MSEs.
Prime Minister's Employment Generation Programme (PMEGP): Scheme providing Margin Money subsidy for setting up new micro-enterprises.
PM Vishwakarma: Scheme launched to provide holistic support to artisans and craftspeople of 18 traditional trades.
Self Reliant India (SRI) Fund: Fund to infuse equity funding in MSMEs.
Ministry of Micro,Small & Medium Enterprises
The Government has taken a number of
initiatives to provide support to MSMEs for
improving access to finance
Credit Guarantee Trust Fund for Micro and Small Enterprises
(CGTMSE) ceiling increased from Rs. 5 Crore to Rs. 10 Crore
Margin Money (MM) subsidy upto 35% in the Non-Farm
sector disbursed under Prime Minister’s Employment
Generation Programme (PMEGP)
Loans upto Rs. 3 Lakh with interest subvention upto 8% to
artisans of 18 traditional trades are provided under PM
Vishwakarma
Self Reliant India (SRI) Fund to infuse Rs. 50,000 Crore as
equity funding in MSMEs
प्रव तथ: 05 DEC 2025 11:56AM by PIB Delhi
Stakeholders’ consultation is a continuous process in policy making including in the MSME sector. The
Government of India has taken a number of initiatives and measures to provide support to Micro, Small
and Medium Enterprises (MSMEs) for improving access to finance. Some of them are:
i. The Ministry of Micro, Small and Medium Enterprises and Small Industries Development
Bank of India (SIDBI) jointly set up Credit Guarantee Trust Fund for Micro and Small
Enterprises (CGTMSE) in the year 2000, to provide credit guarantees for the loans extended by
Member Lending Institutions (MLIs) to Micro and Small Enterprises (MSEs), without requiring
collateral security or third-party guarantee under Credit Guarantee Scheme (CGS). Recently the
Guarantee ceiling has been increased from Rs. 5 Crore to Rs. 10 Crore.
ii. 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 and Rs. 20 Lakh, for Manufacturing and Services enterprises, respectively.
iii. PM Vishwakarma 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%.iv. Self Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 Crores as equity funding
in MSMEs, with Rs. 10,000 Crore from the Government of India and Rs. 40,000 Crore through
Private Equity/Venture Capital Funds.
In addition, the Government has also taken various other measures to enhance access to credit for MSMEs
including collateral free credit to MSEs, implementation of Trade Receivables Discounting System
(TReDS), MutualCreditGuaranteeScheme for projects requiring loans upto Rs 100 Crore to procure
machinery and equipment, reduction in timelines for credit decisions by banks etc.
This information was given by the Minister of State for Micro, Small and Medium Enterprises (Sushri
Shobha Karandlaje) in a written reply in Lok Sabha.
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AKS
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