Lok Sabha Question No. 2987 (UNSTARRED), answered on 2021-08-05
Subject: Repayment of Loans
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Shriniwas Dadasaheb Patil

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

## LOK SABHA UNSTARRED QUESTION NO. 2987 TO BE ANSWERED ON 05.08.2021

## Repayment of Loans

## 2987.       SHRI SHRINIWAS PATIL:

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

(a) the number of businesses or individuals from Satara district of Maharashtra who applied for loans for  Micro, Small and Medium Enterprises under any Central Government scheme during the last three years;

- (b) the number of such loan applications sanctioned by banks and the total amount disbursed;
- (c) whether certain applicants are facing any trouble regarding repayment of these loans; and
- (d) whether the Government  has taken any steps to provide relief to such individuals who are facing difficulties in repaying loans due to pandemic?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NARAYAN RANE)

(a) & (b): Ministry  of  MSME  is  implementing  credit  schemes  such  as  Credit  Guarantee Scheme  (CGS)  for  Micro  and  Small  Enterprises  and  Prime  Minister's  Employment  Generation Programme (PMEGP). These schemes are implemented across the country including Satara district of Maharashtra and details of beneficiaries for last three years under the said schemes in the Satara district of Maharashtra,  are given below:

| Year                        | Credit Guarantee Scheme (CGS)   | Credit Guarantee Scheme (CGS)      | Prime Minister Employment Generation Programme (PMEGP)   | Prime Minister Employment Generation Programme (PMEGP)   |
|-----------------------------|---------------------------------|------------------------------------|----------------------------------------------------------|----------------------------------------------------------|
|                             | No. Guarantees                  | Amount of Guarantee (Rs. in crore) | No. of Projects disbursed by Banks                       | Margin Money Subsidy disbursed (Rs. in crore)            |
| 2018-19                     | 1076                            | 72.44                              | 184                                                      | 5.32                                                     |
| 2019-20                     | 1592                            | 75.81                              | 122                                                      | 3.56                                                     |
| 2020-21                     | 2196                            | 73.78                              | 111                                                      | 3.63                                                     |
| Source: CGTMSE Source: KVIC | Source: CGTMSE Source: KVIC     | Source: CGTMSE Source: KVIC        | Source: CGTMSE Source: KVIC                              | Source: CGTMSE Source: KVIC                              |

(c) & (d): A number of measures have been taken to support stressed micro, small and medium enterprises (MSMEs), which inter-alia include the following:

- (i)  RBI,  vide  circular  dated  6.8.2020,  provide  a  framework  for  lenders  to  implement resolution plans in respect of eligible loans including that to MSMEs having aggregate exposure of more than Rs. 25 crore, to enable lending institutions to offer customized relief  to  borrowers  in  the  form  of  restructuring,  without  downgrading  the  loan  as  an NPA.
- (ii) To facilitate restructuring of loan accounts of MSMEs having aggregate exposure up to Rs. 25 crore, RBI -
- (a) introduced  a  scheme  for  restructuring  loan  accounts  in  default  but  classified  as standard assets  as  on  1.1.2019  of  GST-registered  and  GEST-registration-exempt MSMEs, with exposure  of  up  to  Rs.  25  crore,  without  downgrading  their  asset classification;

- (b)  extended  the  said  scheme  for  loan  accounts  in  default  but  classified  as  standard assets as on 1.1.2020;
- (c)  extended it further, in the context of the pandemic, for loan accounts in default but classified as standard assets as on 1.3.2020, for restructuring up to 31.3.2021;
- (d) vide circular dated 5.5.2021, extended it again, in view of the resurgence of the pandemic, permitting invocation of restructuring till 30.9.2021; and
- (e)  vide  circular  dated  4.6.2021,  enhanced  the  aggregate  exposure  eligible  for restructuring to Rs. 50 crore.
- (iii) Under Atma Nirbhar Bharat package, the Government of India has announced 'Credit Guarantee  Scheme  for  Subordinate  Debt'.  Under  this  scheme,  promoters  of  stressed MSMEs viz. SMA-2 and NPA accounts which are eligible for restructuring as per RBI guidelines on the books of the lending institutions are provided with credit facilities to be covered under guarantee by the CGTMSE. The promoters need to infuse the funds in the form of equity investment for revival of such Units

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