Lok Sabha Question No. 3717 (UNSTARRED), answered on 2023-03-23
Subject: Ease in Loan Availability
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Mala Rajya Laxmi Shah, Pushpendra Singh Chandel

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

## LOK SABHA UNSTARRED QUESTION NO. 3717

## TO BE ANSWERED ON 23.03.2023

## EASE IN LOAN AVAILABILITY

## 3717. SHRIMATI MALA RAJYA LAXMI SHAH: SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

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

- (a) whether  the  Government  has  taken  policy  measures  to  provide  ease  to  Micro,  Small  and Medium Enterprises (MSMEs) in getting loan from financial institution;
- (b) if so, the details thereof;
- (c) the details of the other measures being taken by the Government for MSMEs in addition to ensure ease in loan availability; and
- (d) the details of the funds invested in such industries in Uttarakhand and Bundelkhand region during the last five years?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a) to (c): The  Government  has  taken  measures  for  easing  access  to  credit  for  MSMEs.  As reported by Reserve Bank of India (RBI) some of the measures taken by RBI for improving flow of credit to MSME sector are as under:

- i. Priority  Sector  Lending  Guidelines:  In  terms  of  Master  Direction  on  'Priority  Sector Lending  (PSL)  -  Targets  and  Classification'  dated  September  4,  2020,  all  bank  loans  to MSMEs  conforming  to  the  conditions  prescribed  therein  qualify  for  classification  under priority sector lending.
- ii. Collateral  requirements  of  MSME  units:  Scheduled  Commercial  Banks  have  been mandated not to accept collateral security in the case of loans up to ₹10 lakh extended to units in the MSE sector.
- iii. Trade  Receivables  Discounting  System  (TReDS):  In  order  to  address  the  problem  of delayed payments to MSMEs, RBI has issued guidelines for setting up and operating Trade Receivables Discounting System (TReDS).  The scheme facilitates the financing of trade receivables of MSMEs from corporate and other buyers, including government departments and public sector undertakings (PSUs) through multiple financiers electronically.

- iv. Several special frameworks have been introduced since 2019 to enable banks to restructure their MSME  exposures, subject to certain conditions, to address the stress in the sector due to various factors. A special restructuring window was opened for MSMEs  on  January 01, 2019, which was extended vide notification dated February 11, 2020 and subsequently subsumed under the COVID Resolution  Frameworks  for  MSMEs  announced  on  August  06,  2020  and  May  05, 2021.

## In addition to the above, following measures have also been taken to provide credit to MSMEs:

- (i) Rs.  5  lakh  crore  Emergency  Credit  Line  Guarantee Scheme (ECLGS), for businesses including MSMEs.
- (ii) Credit  Guarantee  Scheme  (CGS):  Ministry  of  MSME  has  been  operating  Credit Guarantee Scheme for Micro & Small Enterprises through Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) since July, 2000. Under this scheme upto 85% guarantee is extended upto credit facility of Rs. 200 lakh, for both term loan and working  capital.  Budget  2023-24  announced  the  infusion  of  Rs.9,000  crore  in  the corpus of CGTMSE  to enable an additional credit of Rs. 2 lakh crore with reduced cost of the credit.
- (iii) Rs. 50,000 crore equity infusion through Self Reliant India Fund.
- (iv) New revised criteria for classification of MSMEs.
- (v) No global tenders for procurement up to Rs. 200 crore.
- (vi) 'Udyam Registration' for MSMEs, for Ease of Doing Business w.e.f. 1.7.2020.
- (vii) Launching of an online Portal 'Champions' in June, 2020 to cover many aspects of egovernance including grievance redress and handholding of MSMEs.
- (viii) Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 2.7. 2021 for priority sector lending.
- (ix) Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- (x) Launch of Udyam Assist Platform on 11.1.2023 to bring  Informal  Micro  Enterprises under the formal ambit for availing the benefits under Priority Sector Lending.

(d): As informed by Credit Guarantee Fund Trust for Micro & Small Enterprises & Department of Financial Services the details of fund provided to the beneficiaries under the CGS, ECLGS, Credit Guarantee Scheme for Stand Up India and Credit Guarantee Fund for Micro Units in Uttarakhand and Bundelkhand region during the last five years are given at Annexure - I.

****

## Annexure-I Annexure  is  referred  of  part  (d)  of  Lok  Sabha  Unstarred  Question  no.  3717  on  'Ease  in  Loan

## Availability' due for reply on 23.03.2023

1. Credit Guarantee Scheme for Micro and Small Enterprises

| State Name         | Financial Year   | No. of Guarantee Approved   |   Sanctioned Amount in Cr |
|--------------------|------------------|-----------------------------|---------------------------|
| Uttarakhand        | 2018-19          | 4,693                       |                    318    |
| Uttarakhand        | 2019-20          | 11,158                      |                    482    |
| Uttarakhand        | 2020-21          | 9,671                       |                    441    |
| Uttarakhand        | 2021-22          | 10,048                      |                    629    |
| Uttarakhand        | 2022-23          | 14,615                      |                   1041    |
| Bundelkhand region | 2018-19          | 4,204                       |                    227.75 |
| Bundelkhand region | 2019-20          | 4,805                       |                    212.25 |
| Bundelkhand region | 2020-21          | 7,736                       |                    203.47 |
| Bundelkhand region | 2021-22          | 7,586                       |                    322.21 |
| Bundelkhand region | 2022-23          | 8,265                       |                    549.98 |

Source: CGTMSE (Data as on 28.02.2023)

2.

- Emergency Credit Line Guarantee Scheme

| State Name         | Financial Year   | No. of Guarantees issued   | Sanctioned Amount in Cr   |
|--------------------|------------------|----------------------------|---------------------------|
| Uttarakhand        | 2020-21          | 61,180                     | 1,696.35                  |
| Uttarakhand        | 2021-22          | 8,250                      | 907.35                    |
| Uttarakhand        | 2022-23          | 615                        | 157.5                     |
| Bundelkhand region | 2020-21          | 37,760                     | 477                       |
| Bundelkhand region | 2021-22          | 12,021                     | 171.69                    |
| Bundelkhand region | 2022-23          | 316                        | 29.39                     |

Source: DFS (Data as on 28.02.2023)

3. Credit Guarantee Scheme for Stand Up India

| State Name         | Financial Year   |   No. of Loan Records |   Sanctioned Amount in Cr |
|--------------------|------------------|-----------------------|---------------------------|
| Uttarakhand        | 2018-19          |                   289 |                  40.6628  |
| Uttarakhand        | 2019-20          |                    92 |                  13.951   |
| Uttarakhand        | 2020-21          |                    44 |                   7.7795  |
| Uttarakhand        | 2021-22          |                    14 |                   3.25    |
| Uttarakhand        | 2022-23          |                   108 |                  20.172   |
| Bundelkhand region | 2018-19          |                   101 |                  13.4559  |
| Bundelkhand region | 2019-20          |                    50 |                   7.30265 |
|                    | 2020-21          |                    29 |                   4.77396 |
|                    | 2021-22          |                    20 |                   4.5538  |
|                    | 2022-23          |                    15 |                   1.998   |

Source: DFS (Data as on 28.02.2023)

4. Credit Guarantee Fund for Micro Units

| State Name         | Financial Year   | No. of Loan Records   |   Sanctioned Amount in Cr |
|--------------------|------------------|-----------------------|---------------------------|
| Uttarakhand        | 2018-19          | 28,237                |                   715.741 |
| Uttarakhand        | 2019-20          | 16,586                |                   360.406 |
| Uttarakhand        | 2020-21          | 10,759                |                   242.84  |
| Uttarakhand        | 2021-22          | 13,807                |                   324.933 |
| Uttarakhand        | 2022-23          | 15,858                |                   364.377 |
| Bundelkhand region | 2018-19          | 18,423                |                   447.792 |
| Bundelkhand region | 2019-20          | 8,480                 |                   152.556 |
| Bundelkhand region | 2020-21          | 6,238                 |                   129.422 |
| Bundelkhand region | 2021-22          | 19,318                |                   179.238 |
| Bundelkhand region | 2022-23          | 10,871                |                   191.086 |

Source: DFS (Data on as 28.02.2023)