Lok Sabha Question No. 475 (UNSTARRED), answered on 2021-02-04
Subject: Collateral Free Loans to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: D.K. Suresh

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

## LOK SABHA UNSTARRED QUESTION NO. 475 TO BE ANSWERED ON: 04.02.2021

## COLLATERAL FREE LOANS TO MSMEs

## 475.              SHRI D.K. SURESH:

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

- (a)    whether,  Micro,  Small  and  Medium  Enterprises  (MSMEs)  are  given  collateral  free loans;
- (b)   if so, the total amount of loan sanctioned and disbursed for MSMEs during the last three years State/Year-wise;
- (c)    whether  the  Government  has  received  any  complaints  from  MSMEs  about  denial  of collateral free loans from banks; and
- (d)   if so, the details thereof?

## ANSWER

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

(a) & (b): Yes,  Sir.    The  Credit  Guarantee  Trust  for  Micro  and  Small  Enterprises (CGTMSE) provides guarantees to various eligible Micro and Small units financed by the banks  and  financial  institutions  to  facilitate  collateral  free  loans.  The  upper  limit  for  such loans is Rs. 2 crore. As a part of Atmanirbhar Bharat package, Government also announced the  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  which  is  a  Rs.  3  lakh  crore collateral-free  lending  program  with  100  percent  credit  guarantee  for  businesses  including MSMEs.  The  State-wise/year-wise  details  of  the  loans  under  CGTMSE  and  State-wise details of the credit under ECLGS are given at Annexure I and Annexure II respectively.

(c) & (d): All proposals that are eligible under the relevant guidelines for a collateral free loan  are  generally  accepted.  However,  Ministry  of  Micro,  Small  and  Medium  Enterprises (MSME)  sometimes  receives  complaints  regarding  denial  of  collateral  free  loans  by  the Banks.    As  there  is  a  prescribed  procedure  for  obtaining  a  collateral  free  loans,  such complaints received in the Ministry of MSME, are accordingly forwarded to concerned Bank for consideration as per the rule/procedure.

******

| Annexure-I   | Annexure-I          | Annexure-I                    | Annexure-I                    | Annexure-I        | Annexure-I               | Annexure-I                 | Annexure-I                 |
|--------------|---------------------|-------------------------------|-------------------------------|-------------------|--------------------------|----------------------------|----------------------------|
| Sr. No.      | States and Uts      | Question No. 475 for FY 18-19 | Question No. 475 for FY 18-19 | FY 19-20          | FY 19-20                 | FY 20-21 (till 31.12.2020) | FY 20-21 (till 31.12.2020) |
| Sr. No.      | States and Uts      | No. of Guarantees             | Approved Amt (in Rs. CR)      | 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                    | 192                        | 15.55                      |
| 2            | Andhra Pradesh      | 29812                         | 979.41                        | 50562             | 1556.78                  | 27322                      | 744.64                     |
| 3            | Arunachal Pradesh   | 347                           | 24.28                         | 415               | 46.95                    | 360                        | 37.53                      |
| 4            | Assam               | 12978                         | 792.69                        | 14070             | 686.72                   | 9422                       | 490.16                     |
| 5            | Bihar               | 18464                         | 1295.92                       | 24531             | 1303.32                  | 16848                      | 762.30                     |
| 6            | Chandigarh          | 7752                          | 335.31                        | 1778              | 133.61                   | 987                        | 67.36                      |
| 7            | Chhattisgarh        | 5252                          | 497.30                        | 14022             | 705.70                   | 8872                       | 377.96                     |
| 8            | Dadra &Nagar Haveli | 111                           | 24.69                         | 256               | 26.88                    | 233                        | 18.35                      |
| 9            | Daman &Diu          | 73                            | 27.14                         | 191               | 32.48                    | 274                        | 12.52                      |
| 10           | Delhi               | 13615                         | 1350.09                       | 24917             | 2182.94                  | 9475                       | 1041.73                    |
| 11           | Goa                 | 1353                          | 120.22                        | 2594              | 183.07                   | 1628                       | 101.63                     |
| 12           | Gujarat             | 21423                         | 2104.14                       | 58595             | 3859.49                  | 30607                      | 2004.26                    |
| 13           | Haryana             | 5179                          | 628.92                        | 25916             | 1582.88                  | 14070                      | 806.60                     |
| 14           | Himachal Pradesh    | 2682                          | 209.69                        | 7538              | 436.78                   | 6021                       | 316.14                     |
| 15           | Jammu &Kashmir      | 11724                         | 348.33                        | 12887             | 416.03                   | 12611                      | 419.90                     |
| 16           | Jharkhand           | 11281                         | 1244.52                       | 15340             | 1116.03                  | 10638                      | 595.15                     |
| 17           | Karnataka           | 27796                         | 2496.55                       | 68572             | 4068.61                  | 41095                      | 2356.13                    |
| 18           | Kerala              | 17189                         | 851.75                        | 33739             | 1248.12                  | 23231                      | 758.29                     |
| 19           | Ladakh              | NA                            | NA                            | 26                | 2.46                     | 11939                      | 284.24                     |
| 20           | Laksha Deep         | 15                            | 0.60                          | 52                | 0.91                     | 38444                      | 113.96                     |
| 21           | Madhya Pradesh      | 26325                         | 157.92                        | 40822             | 2098.28                  | 24747                      | 955.09                     |
| 22           | Maharashtra         | 41206                         | 3718.20                       | 83709             | 5807.82                  | 17966                      | 2046.52                    |
| 23           | Manipur             | 1419                          | 43.89                         | 939               | 42.25                    | 481                        | 21.34                      |
| 24           | Meghalaya           | 515                           | 44.54                         | 1153              | 70.46                    | 654                        | 40.63                      |
| 25           | Mizoram             | 267                           | 23.09                         | 473               | 29.06                    | 8201                       | 199.66                     |
| 26           | Nagaland            | 1003                          | 39.62                         | 917               | 60.95                    | 1297                       | 55.35                      |
| 27           | Orissa              | 19266                         | 1213.41                       | 26167             | 1347.05                  | 20012                      | 770.35                     |
| 28           | Pondicherry         | 489                           | 37.81                         | 1578              | 80.41                    | 17012                      | 460.07                     |
| 29           | Punjab              | 6850                          | 559.56                        | 24542             | 1022.21                  | 7758                       | 442.04                     |
| 30           | Rajasthan           | 20013                         | 1148.29                       | 41289             | 1997.79                  | 32896                      | 1242.43                    |
| 31           | Sikkim              | 280                           | 24.94                         | 435               | 22.92                    | 9589                       | 359.32                     |
| 32           | Tamilnadu           | 37692                         | 2543.01                       | 89725             | 4352.82                  | 26225                      | 1752.61                    |
| 33           | Telangana           | 17037                         | 1021.41                       | 39162             | 2211.72                  | 18637                      | 1087.94                    |
| 34           | Tripura             | 455                           | 24.22                         | 1378              | 53.67                    | 2708                       | 80.78                      |
| 35           |                     |                               |                               |                   |                          |                            |                            |
|              | Uttar Pradesh       | 49983                         | 2862.95                       | 89271             | 4154.02                  | 54485                      | 2413.41 229.41             |
| 36           | Uttarakhand         | 4693                          | 318.33                        | 11158             | 482.19                   | 4407                       |                            |
| 37           | West Bengal TOTAL   | 20649 435520                  | 1610.74 30168.57              | 37667 846650      | 2398.35 45851.22         | 10402 521746               | 794.53 25275.92            |

Source : CGTMSE, Mumbai

| Annexure-II                                                                                                 | Annexure-II                                                                                                 | Annexure-II                                                                                                 | Annexure-II                                                                                                 | Annexure-II                                                                                                 |
|-------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|
| Question No. 475 for answer on 04.02.2021 Status of Emergency Line Credit Guarantee Scheme as on 25.01.2021 | Question No. 475 for answer on 04.02.2021 Status of Emergency Line Credit Guarantee Scheme as on 25.01.2021 | Question No. 475 for answer on 04.02.2021 Status of Emergency Line Credit Guarantee Scheme as on 25.01.2021 | Question No. 475 for answer on 04.02.2021 Status of Emergency Line Credit Guarantee Scheme as on 25.01.2021 | Question No. 475 for answer on 04.02.2021 Status of Emergency Line Credit Guarantee Scheme as on 25.01.2021 |
| State Wise                                                                                                  | Guarantee Nos.                                                                                              | %Guarantee Nos.                                                                                             | Guarantee Amount (Cr)                                                                                       | %Guarantee Amount                                                                                           |
| ANDAMAN& NICOBAR                                                                                            | 1885                                                                                                        | 0.02%                                                                                                       | 92.09                                                                                                       | 0.05%                                                                                                       |
| ANDHRA PRADESH                                                                                              | 246973                                                                                                      | 2.69%                                                                                                       | 7489.3                                                                                                      | 3.72%                                                                                                       |
| ARUNACHAL PRADESH                                                                                           | 2181                                                                                                        | 0.02%                                                                                                       | 62.51                                                                                                       | 0.03%                                                                                                       |
| ASSAM                                                                                                       | 530121                                                                                                      | 5.77%                                                                                                       | 2443.6                                                                                                      | 1.21%                                                                                                       |
| BIHAR                                                                                                       | 644396                                                                                                      | 7.01%                                                                                                       | 3520.16                                                                                                     | 1.75%                                                                                                       |
| CHANDIGARH                                                                                                  | 6326                                                                                                        | 0.07%                                                                                                       | 779.5                                                                                                       | 0.39%                                                                                                       |
| CHHATTISGARH                                                                                                | 135622                                                                                                      | 1.48%                                                                                                       | 3528.39                                                                                                     | 1.75%                                                                                                       |
| DADRA& NAGAR HAVELI                                                                                         | 2012                                                                                                        | 0.02%                                                                                                       | 170.72                                                                                                      | 0.08%                                                                                                       |
| DAMAN &DIU                                                                                                  | 870                                                                                                         | 0.01%                                                                                                       | 115.86                                                                                                      | 0.06%                                                                                                       |
| DELHI                                                                                                       | 89128                                                                                                       | 0.97%                                                                                                       | 11814.73                                                                                                    | 5.81%                                                                                                       |
| GOA                                                                                                         | 11562                                                                                                       | 0.13%                                                                                                       | 631.02                                                                                                      | 0.31%                                                                                                       |
| GUJARAT                                                                                                     | 284716                                                                                                      | 3.10%                                                                                                       | 18996.94                                                                                                    | 9.43%                                                                                                       |
| HARYANA                                                                                                     | 154876                                                                                                      | 1.69%                                                                                                       | 9444.42                                                                                                     | 4.69%                                                                                                       |
| HIMACHAL PRADESH                                                                                            | 46102                                                                                                       | 0.50%                                                                                                       | 1341.92                                                                                                     | 0.67%                                                                                                       |
| JAMMU& KASHMIR                                                                                              | 66631                                                                                                       | 0.73%                                                                                                       | 1841.39                                                                                                     | 0.91%                                                                                                       |
| JHARKHAND                                                                                                   | 239019                                                                                                      | 2.60%                                                                                                       | 2396.1                                                                                                      | 1.91%                                                                                                       |
| KARNATAKA                                                                                                   | 445454                                                                                                      | 4.85%                                                                                                       | 13044.81                                                                                                    | 6.48%                                                                                                       |
| KERALA                                                                                                      | 399278                                                                                                      | 4.34%                                                                                                       | 7075.54                                                                                                     | 3.51%                                                                                                       |
| LADAKH                                                                                                      | 994                                                                                                         | 0.01%                                                                                                       | 43.21                                                                                                       | 0.02%                                                                                                       |
| LAKSHA DEEP                                                                                                 | 335                                                                                                         | 0.00%                                                                                                       | 1.68                                                                                                        | 0.00%                                                                                                       |
| MADHYA PRADESH                                                                                              | 373685                                                                                                      | 4.07%                                                                                                       | 6965.54                                                                                                     | 3.46%                                                                                                       |
| MAHARSHTRA                                                                                                  | 799050                                                                                                      | 8.69%                                                                                                       | 30324.22                                                                                                    | 15.06%                                                                                                      |
| MANIPUR                                                                                                     | 9880                                                                                                        | 0.11%                                                                                                       | 109.92                                                                                                      | 0.05%                                                                                                       |
| MEGHALAYA                                                                                                   | 11169                                                                                                       | 0.12%                                                                                                       | 152.97                                                                                                      | 0.08%                                                                                                       |
| MIZORAM                                                                                                     | 3653                                                                                                        | 0.04%                                                                                                       | 52.42                                                                                                       | 0.03%                                                                                                       |
| NAGALAND                                                                                                    | 7179                                                                                                        | 0.08%                                                                                                       | 56.86                                                                                                       | 0.03%                                                                                                       |
| ORISSA                                                                                                      | 851068                                                                                                      | 9.26%                                                                                                       | 4089.69                                                                                                     | 2.03%                                                                                                       |
| PONDICHERRY                                                                                                 | 11402                                                                                                       | 0.12%                                                                                                       | 331.47                                                                                                      | 0.16%                                                                                                       |
| PUNJAB                                                                                                      | 186810                                                                                                      | 2.03%                                                                                                       | 6949.24                                                                                                     | 3.45%                                                                                                       |
| RAJASTHAN                                                                                                   | 299445                                                                                                      | 3.26%                                                                                                       | 10791.26                                                                                                    | 5.36%                                                                                                       |
| SIKKIM                                                                                                      | 8380                                                                                                        | 0.09%                                                                                                       | 86.14                                                                                                       | 0.04%                                                                                                       |
| TAMILNADU                                                                                                   | 539177                                                                                                      | 5.87%                                                                                                       | 20903.64                                                                                                    | 10.38%                                                                                                      |
| TELANGANA                                                                                                   | 130127                                                                                                      | 1.42%                                                                                                       | 8681.88                                                                                                     | 4.31%                                                                                                       |
| TRIPURA                                                                                                     | 60650                                                                                                       | 0.66%                                                                                                       | 239.82                                                                                                      | 0.12%                                                                                                       |
| UTTAR PRADESH                                                                                               | 645805                                                                                                      | 7.03%                                                                                                       | 13540.09                                                                                                    | 6.72%                                                                                                       |
| UTTARAKHAND                                                                                                 | 65879                                                                                                       | 0.72%                                                                                                       | 1909.64                                                                                                     | 0.95%                                                                                                       |
| WEST BENGAL                                                                                                 | 1878146                                                                                                     | 20.44%                                                                                                      | 11345.53                                                                                                    | 5.63%                                                                                                       |

Source: DFS