Lok Sabha Question No. 3849 (UNSTARRED), answered on 2021-03-18
Subject: Credit Guarantee Fund Trust for MSEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Vishnu Dayal Ram

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3849 TO BE ANSWERED ON 18.03.2021

## CREDIT GUARANTEE FUND TRUST FOR MSEs

## 3849. SHRI VISHNU DAYAL RAM:

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

- (a) the  role  of  the  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises (CGTMSE) in facilitating financial inclusion for Micro and Small Enterprises (MSEs);
- (b) the number of applications received in this regard and funds approved during the period from 2018-2020, State-wise;
- (c) whether  CGTMSE's  total  outstanding  credit  to  the  MSE  sector  is  much  below than that recommended (around 15%); and
- (d) if so, the details thereof and the reasons therefor?

## ANSWER

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

- (a): Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises  (CGTMSE)  is mandated to facilitate credit guarantee support for collateral free / third-party guaranteefree  loans  to  the  Micro  and  Small  enterprises  (MSEs),  especially  in  the  absence  of collateral.  It  facilitates  access  to  finance  for  un-served  and  under-served  segments  of society and geographies.
- (b): The State wise details of guarantees covered under the Credit Guarantee Scheme by CGTMSE during Financial Years 2018-19 and 2019-20 are given in Annexure.
- (c) & (d): The  Credit  Guarantee  Scheme  run  by  CGTMSE  is  a  demand  driven Scheme  and  the  option  to  take  guarantee  lies  wholly  with  the  Member  Lending Institutions (MLIs). It is not mandatory for the MLIs to cover all their MSE loans under the Scheme nor are all loans eligible for coverage.

Nevertheless,  CGTMSE  has    introduced  many  policy  changes  such  as  hybrid security  model,  inclusion  of  retail  trade  activity,  increase  in  the  extent  of  guarantee coverage  to  75%,  charging  guarantee  fees  on  outstanding  amount,  inclusion  of  Non Banking  Financial  Companies  (NBFCs),  Small  Finance  Banks  (SFBs),  Cooperative Banks, etc. to cover more number beneficiaries.

*****

| Annexure to in reply to part (b) of the Lok Sabha Unstarred Question No. 3849 for answering on 18.03.2021   | Annexure to in reply to part (b) of the Lok Sabha Unstarred Question No. 3849 for answering on 18.03.2021   | Annexure to in reply to part (b) of the Lok Sabha Unstarred Question No. 3849 for answering on 18.03.2021   | Annexure to in reply to part (b) of the Lok Sabha Unstarred Question No. 3849 for answering on 18.03.2021   | Annexure to in reply to part (b) of the Lok Sabha Unstarred Question No. 3849 for answering on 18.03.2021   | Annexure to in reply to part (b) of the Lok Sabha Unstarred Question No. 3849 for answering on 18.03.2021   |
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| Sr.                                                                                                         |                                                                                                             | CGTMSE Guarantee States/Uts FY                                                                              | CGTMSE Guarantee States/Uts FY                                                                              | FY                                                                                                          | FY                                                                                                          |
| No                                                                                                          |                                                                                                             | 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