Lok Sabha Question No. 247 (STARRED), answered on 2016-12-02
Subject: Loan to MSMEs
Ministry: FINANCE
Asked by: KRUPAL BALAJI TUMANE

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## STARRED QUESTION NO. *247 TO BE ANSWERED ON 02 nd  December, 2016 / Agrahayana 11, 1938 (SAKA)

## 'Loan to MSMEs'

* 247 : Shri Krupal Balaji Tumane:

Will the Minister of FINANCE be pleased to state : (a)  whether  the  Government  /  banks  provides  loans  to  Micro,  Small  and  Medium Enterprises (MSMEs) units under different categories / schemes; (b)   if so, the details thereof along with number of beneficiaries and amount of credit provided under the said schemes during the last three years, State / UT - wise; (c)  whether the Government / banks levies interest on loans provided under the said categories / schemes at a lower rate of interest and if so, the details thereof and if not, the reasons therefor; and (d)  the steps taken / being taken by the Government to ensure cheaper credit flow to

- MSMEs in the country including North Eastern Region?

## ANSWER FINANCE MINISTER

## (SHRI ARUN JAITLEY)

(a) to (d)  :  A Statement is laid on the Table of the House.

- ******

STATEMENT REFERRED IN REPLY TO RAJYA SABHA STARRED QUESTION NO. * 247 FOR ANSWER ON 2 ND  DECEMBER 2016, TABLED BY SHRI KRUPAL BALAJI TUMANE REGARDING LOAN TO MSMES.

- (a) & (b) : Yes Madam, Scheduled Commercial Banks (SCBs) extend loans to Micro, Small and Medium Enterprises (MSMEs).  Under the Priority Sector Lending (PSL) norms, SCBs are mandated to provide 7.5% of Adjusted Net Bank Credit (ANBC) to Micro Enterprises.   Statement details in this regard are at Annex-I .
- (c) &  (d)  : Loans  to  MSMEs  are  based  on  extant  guidelines  of  the  RBI. Government has several schemes all over India including North East, which are  being  implemented  to  reduce  the  effective  cost  of  loans  to  MSMEs. These  include,  inter-alia,  Refinance  support  for  MSME  loans  and  Credit Linked Capital Subsidy Scheme (CLCSS) . The details are at Annex II & III .

.

- *******

## Outstanding Credit to Micro and Small Enterprises(MSEs) by Scheduled Commercial Banks

No. of A/c in lakh, Amt. O/s in Rs.crore

No. of A/c in lakh, Amt. O/s in Rs.crore

| Sr. No   | State                | As on March 31, 2013   | As on March 31, 2013   | As on March 31, 2014   | As on March 31, 2014   | As on March 31, 2015   | As on March 31, 2015   | As on March 31, 2016   | As on March 31, 2016   |
|----------|----------------------|------------------------|------------------------|------------------------|------------------------|------------------------|------------------------|------------------------|------------------------|
| Sr. No   | State                | No. of A/c             | Amt O/s                | No. of A/c             | Amt O/s                | No. of A/c             | Amt O/s                | No. of A/c             | Amt O/s                |
| 1        | Andamans             | 0.08                   | 349.33                 | 0.09                   | 626.25                 | 0.09                   | 505.14                 | 0.09                   | 452.34                 |
| 2        | Andhra Pradesh       | 10.70                  | 47476.70               | 12.68                  | 57915.64               | 12.46                  | 63925.10               | 9.14                   | 35863.82               |
| 3        | Arunachal Pradesh    | 0.10                   | 334.85                 | 0.07                   | 445.33                 | 0.10                   | 558.19                 | 0.10                   | 548.81                 |
| 4        | Assam                | 1.61                   | 7077.25                | 1.76                   | 8212.38                | 2.19                   | 9502.58                | 6.13                   | 10611.02               |
| 5        | Bihar                | 4.34                   | 8914.01                | 4.10                   | 11674.03               | 4.49                   | 13953.95               | 7.35                   | 15943.89               |
| 6        | Chandigarh           | 0.32                   | 6398.17                | 0.32                   | 7487.66                | 0.29                   | 7787.91                | 0.37                   | 7646.36                |
| 7        | Chattisgarh          | 1.38                   | 9634.03                | 1.46                   | 12304.95               | 1.57                   | 13384.18               | 3.30                   | 14334.75               |
| 8        | Dadra & Nagar Haveli | 0.02                   | 189.41                 | 0.02                   | 278.31                 | 0.03                   | 386.62                 | 0.04                   | 446.76                 |
| 9        | Daman & Diu          | 0.01                   | 237.03                 | 0.02                   | 349.83                 | 0.02                   | 508.47                 | 0.03                   | 374.13                 |
| 10       | Delhi                | 2.58                   | 54941.94               | 3.36                   | 71879.91               | 3.48                   | 78455.76               | 4.02                   | 75611.51               |
| 11       | Goa                  | 0.42                   | 2624.20                | 0.49                   | 3092.74                | 0.65                   | 4345.86                | 0.59                   | 3632.02                |
| 12       | Gujarat              | 5.65                   | 47494.69               | 6.32                   | 62840.36               | 7.26                   | 73096.50               | 9.01                   | 72333.22               |
| 13       | Haryana              | 2.62                   | 24468.29               | 2.88                   | 31900.62               | 3.23                   | 36683.16               | 4.16                   | 36221.53               |
| 14       | Himachal Pradesh     | 0.93                   | 5049.48                | 0.89                   | 5555.08                | 0.88                   | 6123.89                | 1.08                   | 6241.80                |
| 15       | Jammu & Kashmir      | 1.78                   | 6697.60                | 1.91                   | 7236.89                | 2.20                   | 8395.84                | 2.36                   | 8498.03                |
| 16       | Jharkhand            | 2.19                   | 9631.58                | 2.16                   | 11142.68               | 2.40                   | 13232.30               | 4.16                   | 13302.70               |
| 17       | Karnataka            | 7.39                   | 34920.74               | 9.18                   | 48200.93               | 11.37                  | 59501.65               | 13.34                  | 63459.31               |
| 18       | Kerala               | 5.23                   | 23141.13               | 5.58                   | 29909.39               | 6.32                   | 34766.59               | 7.33                   | 39203.66               |
| 19       | Lakshadweep          | 0.01                   | 9.51                   | 0.01                   | 9.66                   | 0.02                   | 63.95                  | 0.02                   | 57.27                  |
| 20       | Madhya Pradesh       | 4.68                   | 19819.06               | 5.48                   | 26775.81               | 6.34                   | 36252.33               | 10.04                  | 34410.46               |
| 21       | Maharashtra          | 14.40                  | 127702.54              | 15.25                  | 145022.9 4             | 16.78                  | 159355.8 6             | 26.83                  | 164010.29              |
| 22       | Manipur              | 0.08                   | 299.93                 | 0.11                   | 491.86                 | 0.12                   | 411.67                 | 0.16                   | 502.19                 |
| 23       | Meghalaya            | 0.13                   | 581.62                 | 0.15                   | 661.54                 | 0.17                   | 742.36                 | 0.25                   | 768.77                 |
| 24       | Mizoram              | 0.05                   | 248.56                 | 0.06                   | 315.19                 | 0.06                   | 338.02                 | 0.08                   | 388.99                 |
| 25       | Nagaland             | 0.13                   | 461.72                 | 0.10                   | 408.20                 | 0.13                   | 387.84                 | 0.10                   | 500.10                 |
| 26       | Orissa               | 4.35                   | 12385.31               | 4.32                   | 14536.26               | 3.90                   | 16674.75               | 6.60                   | 17817.57               |
| 27       | Puducherry           | 0.36                   | 1395.57                | 0.49                   | 1832.00                | 0.53                   | 2459.93                | 0.57                   | 2228.55                |
| 28       | Punjab               | 3.17                   | 34934.80               | 3.75                   | 41933.14               | 3.98                   | 47239.67               | 5.47                   | 40305.51               |
| 29       | Rajasthan            | 4.97                   | 28362.92               | 5.40                   | 36062.52               | 5.61                   | 43187.84               | 7.59                   | 44052.59               |
| 30       | Sikkim               | 0.04                   | 304.40                 | 0.05                   | 322.35                 | 0.10                   | 414.01                 | 0.14                   | 381.26                 |
| 31       | Tamil Nadu           | 16.63                  | 79992.02               | 19.18                  | 95199.28               | 19.14                  | 102255.6 6             | 22.59                  | 117821.92              |
| 32       | Telangana            | 0.00                   | 0.00                   | 0.00                   |                        | 0.00                   | 0.00                   | 5.33                   | 35217.85               |
| 33       | Tripura              | 0.26                   | 947.04                 | 0.31                   | 1376.58                | 0.33                   | 1455.56                | 1.16                   | 1617.24                |
| 34       | Uttarakhand          | 1.04                   | 7568.32                | 2.04                   | 12524.45               | 2.67                   | 15754.98               | 3.11                   | 13863.55               |
| 35       | Uttar Pradesh        | 8.09                   | 42930.72               | 8.86                   | 50724.21               | 9.46                   | 55550.09               | 13.96                  | 63705.22               |
| 36       | West Bengal          | 6.12                   | 39684.27               | 6.73                   | 51843.51               | 9.84                   | 53515.98               | 27.46                  | 54049.93               |
| Total    | Total                | 111.86                 | 687208.74              | 125.60                 | 851092.4 8             | 138.24                 | 961174.1 7             | 204.05                 | 996424.94              |

Source: As reported by Scheduled Commercial

Banks

## Refinance to MSMEs by SIDBI

(Rs. in crore)

| Refinance to                     |   As on March 31, 2015 |   As on March 31, 2016 |
|----------------------------------|------------------------|------------------------|
| Banks and Financial Institutions |               46543.9  |               38098.8  |
| Micro Finance Institutions       |                2013.25 |                1602.99 |
| Non-Banking Financial Companies  |                5677.55 |                4054.29 |
| TOTAL                            |               54234.7  |               43756.1  |

Refinance by Mudra Ltd.

| Refinance to                        |   As on 21.10.2016 |
|-------------------------------------|--------------------|
| Banks                               |            3411.27 |
| Micro Finance Institutions          |             741    |
| Investment Pass through Certificate |             278.81 |
| TOTAL                               |            4431.08 |

## State / UT -wise physical & financial performance of CLCSS

Subsidy

|    | State/UT                 |              | 2013-14                 |              | 2014-15                 | 2015-16      | 2015-16                  | Current Year (2016- 17) (upto 31.10.2016)   | Current Year (2016- 17) (upto 31.10.2016)   | Cumalative progress since inception i.e., FY 2001-02 to FY 2016- 17 (upto 31.10.2016)   | Cumalative progress since inception i.e., FY 2001-02 to FY 2016- 17 (upto 31.10.2016)   |
|----|--------------------------|--------------|-------------------------|--------------|-------------------------|--------------|--------------------------|---------------------------------------------|---------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
|    |                          | No. of Units | Subsidy ( Amt. In Lakh) | No. of Units | Subsidy ( Amt. In Lakh) | No. of Units | Subsid y ( Amt. In Lakh) | No. of Units                                | Subsidy ( Amt. In Lakh)                     | No. of Units                                                                            | Subsidy ( Amt. In Lakh)                                                                 |
| 1  | Andhra Pradesh           | 203          | 2194.06                 | 129          | 1221.32                 | 38           | 394.85                   | 28                                          | 300.21                                      | 1750                                                                                    | 13662.48                                                                                |
| 2  | Andman & Nicobar         | 0            | 0.00                    | 0            | 0.00                    | 0            | 0.00                     | 0                                           | 0.00                                        | 0                                                                                       | 0.00                                                                                    |
| 3  | Arunanchal Pradesh       | 0            | 0.00                    | 0            | 0.00                    | 0            | 0.00                     | 0                                           | 0.00                                        | 0                                                                                       | 0.00                                                                                    |
| 4  | Assam                    | 1            | 15.00                   | 0            | 0.00                    | 4            | 32.57                    | 0                                           | 0.00                                        | 11                                                                                      | 106.32                                                                                  |
| 5  | Bihar                    | 3            | 28.11                   | 0            | 0.00                    | 4            | 43.47                    | 1                                           | 15.00                                       | 23                                                                                      | 202.86                                                                                  |
| 6  | Chandigar h              | 50           | 291.87                  | 22           | 133.17                  | 14           | 57.14                    | 4                                           | 35.69                                       | 236                                                                                     | 1202.66                                                                                 |
| 7  | Chhatisgar h             | 38           | 312.53                  | 59           | 463.19                  | 38           | 321.92                   | 7                                           | 75.13                                       | 324                                                                                     | 2195.03                                                                                 |
| 8  | Dadra & Nagar Haveli     | 4            | 20.85                   | 24           | 180.71                  | 8            | 50.33                    | 14                                          | 119.30                                      | 65                                                                                      | 535.28                                                                                  |
| 9  | Daman & Diu              | 20           | 129.63                  | 25           | 137.74                  | 22           | 126.63                   | 15                                          | 98.01                                       | 95                                                                                      | 614.66                                                                                  |
| 10 | Goa                      | 3            | 29.34                   | 6            | 37.28                   | 2            | 4.27                     | 3                                           | 26.03                                       | 46                                                                                      | 233.24                                                                                  |
| 11 | Gujarat                  | 2154         | 13175.27                | 3060         | 18023.40                | 2046         | 13073. 97                | 1617                                        | 10215.41                                    | 13417                                                                                   | 78678.70                                                                                |
| 12 | Haryana Himachal         | 325          | 2545.29                 | 512          | 3412.51                 | 314          | 2094.7 6                 | 161                                         | 1057.08                                     | 2276                                                                                    | 15924.96                                                                                |
| 13 | Pradesh                  | 3            | 36.00                   | 8            | 72.63                   | 2            | 10.62                    | 3                                           | 11.40                                       | 26                                                                                      | 181.47                                                                                  |
| 14 | J&K                      | 0            | 0.00                    | 0            | 0.00                    | 0            | 0.00                     | 0                                           | 0.00                                        | 1                                                                                       | 1.00                                                                                    |
| 15 | Jharkhand                | 20           | 124.61                  | 15           | 99.27                   | 16           | 115.32                   | 5                                           | 47.84                                       | 152                                                                                     | 1083.00                                                                                 |
| 16 | Karnataka                | 438          | 2422.29                 | 491          | 2549.45                 | 318          | 1763.8 0                 | 147                                         | 887.76                                      | 4115                                                                                    | 20690.54                                                                                |
| 17 | Kerala                   | 31           | 242.80                  | 33           | 214.19                  | 20           | 119.59                   | 10                                          | 73.74                                       | 220                                                                                     | 1611.40                                                                                 |
| 18 | Lakshdwee p              | 0            | 0.00                    | 0            | 0.00                    | 0            | 0.00                     | 0                                           | 0.00                                        | 1                                                                                       | 1.48                                                                                    |
| 19 | Madhya Pradesh           | 67           | 564.85                  | 42           | 357.77                  | 31           | 228.12 5869.4            | 13                                          | 66.20                                       | 346                                                                                     | 2399.33                                                                                 |
| 20 | Maharashtr a             | 1112         | 7868.01                 | 1201         | 7328.24                 | 976          | 0                        | 616                                         | 3860.24                                     | 6343                                                                                    | 39260.12                                                                                |
| 21 | Manipur                  | 0            | 0.00                    | 0            | 0.00                    | 0            | 0.00                     | 0                                           | 0.00                                        | 1                                                                                       | 6.83                                                                                    |
| 22 | Meghalaya                | 0            | 0.00                    | 0            | 0.00                    | 0            | 0.00                     | 0                                           | 0.00                                        | 0                                                                                       | 0.00                                                                                    |
| 23 | Mizoram                  | 0            | 0.00                    | 0            | 0.00                    | 0            | 0.00                     | 0                                           | 0.00                                        | 0                                                                                       | 0.00                                                                                    |
| 24 | Nagaland                 | 0            | 0.00                    | 0            | 0.00                    | 0            | 0.00                     | 0                                           | 0.00                                        | 2                                                                                       | 29.96                                                                                   |
| 25 | Delhi                    | 65           | 610.53                  | 47           | 365.63                  | 22           | 142.73                   | 8                                           | 49.20                                       | 448                                                                                     | 3190.63                                                                                 |
| 26 | Odisha                   | 22           | 230.83                  | 19           | 140.69                  | 7            | 62.44                    | 2                                           | 17.72                                       | 321                                                                                     | 1962.23                                                                                 |
| 27 | Pudducher y              | 2            | 19.81                   | 3            | 27.43                   | 0            | 0.00                     | 1                                           | 10.23                                       | 24                                                                                      | 193.57                                                                                  |
| 28 | Punjab                   | 582          | 4002.85                 | 561          | 3255.41                 | 447          | 2534.7 3                 | 303                                         | 1483.49                                     | 3812                                                                                    | 23100.57                                                                                |
| 29 | Rajasthan                | 452          | 3003.05                 | 362          | 2489.10                 | 240          | 1718.7 3                 | 129                                         | 907.49                                      | 2318                                                                                    | 14981.57                                                                                |
| 30 | Sikkim                   | 0            | 0.00                    | 0            | 0.00                    | 0            | 0.00                     | 0                                           | 0.00                                        | 1                                                                                       | 15.00                                                                                   |
| 31 | Tamilnadu                | 561          | 3181.42                 | 377          | 2322.75                 | 228          | 1460.3 9                 | 137                                         | 830.67                                      | 6248                                                                                    | 28465.51                                                                                |
| 32 | Tripura                  | 0            | 0.00                    | 1            | 15.00                   | 0            | 0.00                     | 0                                           | 0.00                                        | 7                                                                                       | 28.30                                                                                   |
|    |                          |              |                         | 174          | 1275.19                 |              | 964.77                   |                                             | 715.90                                      | 900                                                                                     | 6115.54                                                                                 |
| 33 | Uttar Pradesh Uttarakhan | 97           | 767.03                  |              |                         | 129          |                          | 90                                          |                                             |                                                                                         |                                                                                         |
| 34 | d                        | 5            | 53.50                   | 17           | 178.66                  | 14           | 92.94                    | 6                                           | 69.55                                       | 54                                                                                      | 489.49 2032.41                                                                          |
| 35 | West                     | 21           | 279.28                  | 27           | 313.61                  | 27           | 237.84                   | 14                                          | 154.29                                      | 220                                                                                     |                                                                                         |

|    | Bengal    |      |         |      |          |      |           |      |          |       |          |
|----|-----------|------|---------|------|----------|------|-----------|------|----------|-------|----------|
| 36 | Telangana |    0 |     0   |   31 |   270.78 |   80 | 722.15    |   57 |   516.17 |   168 |   1509.1 |
|    | Total     | 6279 | 42148.8 | 7246 | 44885.1  | 5047 | 32243. 47 | 3391 | 21643.8  | 43971 | 260705   |