Lok Sabha Question No. 345 (UNSTARRED), answered on 2022-02-03
Subject: Bank Credit/Loan to MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sisir Kumar Adhikari

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

## LOK SABHA UNSTARRED QUESTION NO. 345 TO BE ANSWERED ON 03.02.2022

## BANK CREDIT/LOAN TO MSME SECTOR

## 345.     SHRI SISIR KUMAR ADHIKARI:

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

- (a) the  details  of  bank  credit/  loan  to  the  Micro,  Small  and  Medium  Enterprises  (MSMEs) during the last five financial years, year-wise;
- (b) whether the real growth in bank credit to the MSME sector has dropped;
- (c) if so, the details thereof, year-wise and the reasons therefor; and
- (d) the steps being taken by the government to increase the loan credit to MSMEs?

## ANSWER

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

(a) to (c): As reported by Reserve Bank of India (RBI) the details of outstanding bank credit to the Micro, Small and Medium Enterprises (MSMEs) during the last five financial years, year-wise are as under:

(No of Accounts in lakhs and Amount in Rs. Crore)

| Year ended   | Micro Enterprises   | Micro Enterprises   | Small Enterprises   | Small Enterprises   | Medium Enterprises   | Medium Enterprises   | Total MSME   | Total MSME   |
|--------------|---------------------|---------------------|---------------------|---------------------|----------------------|----------------------|--------------|--------------|
| Year 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-17       | 213.25              | 5,29,519.42         | 18.80               | 5,40,610.05         | 1.57                 | 2,26,269.34          | 233.61       | 12,96,398.82 |
| Mar-18       | 228.97              | 5,66,137.92         | 30.67               | 5,83,215.90         | 1.90                 | 1,74,885.52          | 261.54       | 13,24,239.34 |
| Mar-19       | 295.05              | 6,75,200.50         | 23.03               | 6,38,030.79         | 2.60                 | 1,97,419.22          | 320.68       | 15,10,650.52 |
| Mar-20       | 353.02              | 7,46,043.67         | 27.62               | 6,67,734.90         | 3.54                 | 1,99,803.60          | 384.18       | 16,13,582.17 |
| Mar-21       | 387.93              | 8,21,027.77         | 27.82               | 6,62,998.50         | 4.44                 | 2,99,898.53          | 420.19       | 17,83,924.80 |
| Source: RBI  | Source: RBI         | Source: RBI         | Source: RBI         | Source: RBI         | Source: RBI          | Source: RBI          | Source: RBI  | Source: RBI  |

- (d): The Government has taken a number of initiatives in recent years for MSMEs to increase the  loan  credit  which  inter-alia  includes  measures  such  as  (i)  Rs.  4.5  lakh  crore  Collateral  free Automatic  Loans  under  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  for  businesses, including MSMEs; (ii) Rs. 20,000 crore Credit Guarantee Scheme for Subordinate Debt (CGSSD); MSMEs have also been supported by the ongoing financial assistance schemes of this Ministry i.e. (i) Prime Minister's Employment Generation Programme (PMEGP) which is a major credit-linked subsidy programme aimed at generating self-employment; and (ii) Credit Guarantee Scheme (CGS) to  strengthen  credit  delivery  system  and  facilitate  the  flow  of  credit  to  the  Micro  and  Small Enterprise sector without the hassles of collateral and third party guarantee.

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