Lok Sabha Question No. 4904 (UNSTARRED), answered on 2021-03-25
Subject: Loans Sanctioned to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sanjay Kumar Bandi

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 4904 TO BE ANSWERED ON 25.03.2021

## LOANS SANCTIONED TO MSMEs

4904.

SHRI BANDI SANJAY KUMAR:

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

- (a)  whether there has been some slowdown in loans sanctioned to struggling business and Micro, Small and Medium Enterprises (MSMEs) in the pre and post COVID-19 period;
- (b)   if so, the comparative details thereof and the reasons therefor; and
- (c)  the corrective steps being taken/results yielded, loan-wise during the last three years and current year?

## ANSWER

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

(a) & (b): The figures  reported  by  Reserve  Bank  of  India  (RBI)  on  the  credit  flow  to  MSME sector by the Scheduled Commercial Banks are reproduced in the table below:

| (No of Accounts in Lakh and Amount in Rs. Crore)   | (No of Accounts in Lakh and Amount in Rs. Crore)   | (No of Accounts in Lakh and Amount in Rs. Crore)   | (No of Accounts in Lakh and Amount in Rs. Crore)   | (No of Accounts in Lakh and Amount in Rs. Crore)   | (No of Accounts in Lakh and Amount in Rs. Crore)   | (No of Accounts in Lakh and Amount in Rs. Crore)   | (No of Accounts in Lakh and Amount in Rs. Crore)   | (No of Accounts in Lakh and Amount in Rs. Crore)   |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| Year/Quart er ended                                | Micro Enterprises                                  | Micro Enterprises                                  | Small Enterprises                                  | Small Enterprises                                  | Medium Enterprises                                 | Medium Enterprises                                 | Total MSME                                         | Total MSME                                         |
| Year/Quart er ended                                | No. of A/cs                                        | Amt. O/s                                           | No. of A/cs                                        | Amt. O/s                                           | No. of A/cs                                        | Amt. O/s                                           | No. of A/cs                                        | Amt. O/s                                           |
| Mar-18                                             | 228.97                                             | 566137.92                                          | 30.67                                              | 583215.90                                          | 1.90                                               | 174885.52                                          | 261.54                                             | 1324239.34                                         |
| Mar-19                                             | 295.05                                             | 675200.50                                          | 23.03                                              | 638030.79                                          | 2.60                                               | 197419.22                                          | 320.68                                             | 1510650.52                                         |
| Mar-20                                             | 353.02                                             | 746043.67                                          | 27.62                                              | 667734.90                                          | 3.54                                               | 199803.60                                          | 384.18                                             | 1613582.17                                         |
| Dec-20                                             | 394.48                                             | 763109.11                                          | 23.20                                              | 652291.81                                          | 5.32                                               | 270923.96                                          | 423.00                                             | 1686324.88                                         |
| Source: RBI                                        | Source: RBI                                        | Source: RBI                                        | Source: RBI                                        | Source: RBI                                        | Source: RBI                                        | Source: RBI                                        | Source: RBI                                        | Source: RBI                                        |

(c): Government of India announced a series of measures under Atmanirbhar Bharat package for promotion of MSMEs in the country, which inter-alia includes Rs. 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for  collateral-free lending with 100 percent credit guarantee for businesses  including  MSMEs,  Rs.20,000  crore  Credit  Guarantee  Scheme  for  Subordinate  Debt (CGSSD) for the promoters of stressed MSMEs viz. SMA-2 and NPA accounts which are eligible for restructuring  as  per  RBI  guidelines,    Rs.  45,000  crore  partial  credit  guarantee  scheme  for  NonBanking Financial Companies (NBFCs), Housing Finance Companies (HFCs) to do fresh lending to MSMEs,  Rs. 50,000 crore equity infusion for MSMEs through Fund of Funds,  revision in criteria for classification of MSMEs, no global tenders for procurement up to Rs. 200 crore etc.

As  per  the  data  furnished  by  National  Credit  Guarantee  Trustee  Company  Ltd  (NCTGC), which is the implementing agency of  Emergency Credit Line Guarantee Scheme (ECLGS), as on 28.02.2021, the cumulative sanctioned and disbursed amount under the scheme is Rs 2.46 lakh crore and  Rs  1.81  lakh  crore  respectively.  Under  the  Credit  Guarantee  Scheme  for  Subordinate  Debt (CGSSD), as on 10.03.2021, 343 number Guarantees have been issued amounting to Rs 40.56 crore.