Lok Sabha Question No. 4858 (UNSTARRED), answered on 2021-03-25
Subject: Collateral Free Loans to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sunil Kumar Singh, Sudhakar Tukaram Shrangre, Virendra  Kumar, Pratima Bhoumik, Prathap Simha, Bhagwanth Khuba

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 4858 TO BE ANSWERED ON 25.03.2021

## COLLATERAL FREE LOANS TO MSMEs

4858.

SHRI SUNIL KUMAR SINGH: SHRI SUDHAKAR TUKARAM SHRANGARE: DR. VIRENDRA KUMAR: MS. PRATIMA BHOUMIK: SHRI PRATHAP SIMHA:

SHRI BHAGWANTH KHUBA:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Government is giving collateral free loan up-to a limit of Rs one crore for Individual  MSME  and  if  so,  the  details  of  disbursement  made  to  various  States  including Jharkhand and Maharashtra during the last two year; and
- (b) whether the Government has any data of  funds spent so far under  Interest  Subsidy Eligibility Certificate Program and if so, the details thereof?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

- (a): The government does not directly extend any loan to individual MSEs. However, it facilitates  collateral  free  loans  from  Member  Lending  Institutions  through  the  Credit Guarantee  Scheme  of  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME).  The Scheme  is  implemented  through  Credit  Guarantee  Fund  Trust  for  Micro  and  Small Enterprises (CGTMSE) which provides guarantee to Member Lending Institutions (MLIs) for credit  facilities  sanctioned  by  them  to  Micro  and  Small  Entrepreneurs  (MSEs)  without collateral  security  and  third  party  guarantee  up  to  ₹2  crore.  The  State  wise  details  of guarantees covered under the scheme including Jharkhand and Maharashtra during Financial Years 2018-19 and 2019-20 are given in Annexure.
- (b): Yes,  Sir.  Funds  provided  to  khadi  institutes  under  Interest  Subsidy  Eligibility Certification (ISEC)  Scheme during the last three years is as below:

| Year         | Interest Subsidy released (Rs. in crore)   |
|--------------|--------------------------------------------|
| 2017-18      | 39.12                                      |
| 2018-19      | 34.87                                      |
| 2019-20      | 38.02                                      |
| Source: KVIC | Source: KVIC                               |

*****

Annexure referred to in reply to Part (a) of the Lok Sabha Unstarred Question No. 4858 for answer on 25.03.2021

| CGTMSE Guarantee Approved Data   | CGTMSE Guarantee Approved Data   | CGTMSE Guarantee Approved Data   | CGTMSE Guarantee Approved Data   | CGTMSE Guarantee Approved Data   | CGTMSE Guarantee Approved Data   |
|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|
| Sr. No.                          | States/Uts                       | FY 18-19                         | FY 18-19                         | FY 19-20                         | FY 19-20                         |
| Sr. No.                          | States/Uts                       | No. of Guarantees                | Approved Amt (in Rs. Cr)         | No. of Guarantees                | Approved Amt (in Rs. Cr)         |
| 1                                | ANDAMAN& NICOBAR                 | 332                              | 30.10                            | 264                              | 29.45                            |
| 2                                | ANDHRA PRADESH                   | 29812                            | 979.41                           | 50562                            | 1556.78                          |
| 3                                | ARUNACHAL PRADESH                | 347                              | 24.28                            | 415                              | 46.95                            |
| 4                                | ASSAM                            | 12978                            | 792.69                           | 14070                            | 686.72                           |
| 5                                | BIHAR                            | 18464                            | 1295.92                          | 24531                            | 1303.32                          |
| 6                                | CHANDIGARH                       | 7752                             | 335.31                           | 1778                             | 133.61                           |
| 7                                | CHHATTISGARH                     | 5252                             | 497.30                           | 14022                            | 705.70                           |
| 8                                | DADRA&NAGAR HAVELI               | 111                              | 24.69                            | 256                              | 26.88                            |
| 9                                | DAMAN &DIU                       | 73                               | 27.14                            | 191                              | 32.48                            |
| 10.                              | DELHI                            | 13615                            | 1350.09                          | 24917                            | 2182.94                          |
| 11.                              | GOA                              | 1353                             | 120.22                           | 2594                             | 183.07                           |
| 12.                              | GUJARAT                          | 21423                            | 2104.14                          | 58595                            | 3859.49                          |
| 13.                              | HARYANA                          | 5179                             | 628.92                           | 25916                            | 1582.88                          |
| 14.                              | HIMACHAL PRADESH                 | 2682                             | 209.69                           | 7538                             | 436.78                           |
| 15.                              | JAMMU &KASHMIR                   | 11724                            | 348.33                           | 12887                            | 416.03                           |
| 16.                              | JHARKHAND                        | 11281                            | 1244.52                          | 15340                            | 1116.03                          |
| 17.                              | KARNATAKA                        | 27796                            | 2496.55                          | 68572                            | 4068.61                          |
| 18.                              | KERALA                           | 17189                            | 851.75                           | 33739                            | 1248.12                          |
| 19                               | LADAKH                           | NA                               | NA                               | 26                               | 2.46                             |
| 20                               | LAKSHA DEEP                      | 15                               | 0.60                             | 52                               | 0.91                             |
| 21                               | MADHYA PRADESH                   | 26325                            | 1572.92                          | 40822                            | 2098.28                          |
| 22                               | MAHARASHTRA                      | 41206                            | 3718.20                          | 83709                            | 5807.82                          |
| 23                               | MANIPUR                          | 1419                             | 43.89                            | 939                              | 42.25                            |
| 24                               | MEGHALAYA                        | 515                              | 44.54                            | 1153                             | 70.46                            |
| 25                               | MIZORAM                          | 267                              | 23.09                            | 473                              | 29.06                            |
| 26                               | NAGALAND                         | 1003                             | 39.62                            | 917                              | 60.95                            |
| 27                               | ORISSA                           | 19266                            | 1213.41                          | 26167                            | 1347.05                          |
| 28                               | PONDICHERRY                      | 489                              | 37.81                            | 1578                             | 80.41                            |
| 29                               | PUNJAB                           | 6850                             | 559.56                           | 24542                            | 1022.21                          |
| 30                               | RAJASTHAN                        | 20013                            | 1148.29                          | 41289                            | 1997.79                          |
| 31                               | SIKKIM                           | 280                              | 24.94                            | 435                              | 22.92                            |
| 32                               | TAMILNADU                        | 37692                            | 2543.01                          | 89725                            | 4352.82                          |
| 33                               | TELANGANA                        | 17037                            | 1021.41                          | 39162                            | 2211.72                          |
| 34                               | TRIPURA                          | 455                              | 24.22                            | 1378                             | 53.67                            |
| 35                               | UTTAR PRADESH                    | 49983                            | 2862.95                          | 89271                            | 4154.02                          |
| 36                               | UTTRAKHAND                       | 4693                             | 318.33                           | 11158                            | 482.19                           |
| 37                               | WEST BENGAL                      | 20649                            | 1610.74                          | 37667                            | 2398.35                          |
|                                  | TOTAL                            | 435520                           | 30168.57                         | 846650                           | 45851.22                         |

Source: CGTMSE