Lok Sabha Question No. 3227 (UNSTARRED), answered on 2025-03-20
Subject: Credit Support to MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Aparajita Sarangi, Shri Manoj Tiwari, Shri Kanwar Singh Tanwar, Shri Vijay Kumar Dubey, Shri Bhartruhari Mahtab, Shri P C Mohan, Shri Jashubhai Bhilubhai Rathva, Shri Bhojraj Nag, Shri Dharambir Singh, Dr. Rajesh Mishra, Shri Shrirang Appa Chandu Barne, Shri Praveen Patel, Shri Damodar Agrawal, Shri P P Chaudhary, Shri Jaswantsinh Sumanbhai Bhabhor, Smt. Smita Uday Wagh

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

## LOK  SABHA UNSTARRED QUESTION NO. 3227

TO BE ANSWERED ON 20.03.2025

## CREDIT SUPPORT TO MSMEs

## 3227. SHRI P P CHAUDHARY:

SHRI JASWANTSINH SUMANBHAI BHABHOR:

SHRI BHOJRAJ NAG:

SHRI JASHUBHAI BHILUBHAI RATHVA:

SHRI P C MOHAN:

SMT. SMITA UDAY WAGH:

SHRI DAMODAR AGRAWAL:

SHRI BHARTRUHARI MAHTAB:

SHRI SHRIRANG APPA CHANDU BARNE:

DR. RAJESH MISHRA:

SHRI VIJAY KUMAR DUBEY:

SHRI DHARAMBIR SINGH:

SMT. APARAJITA SARANGI:

SHRI KANWAR SINGH TANWAR:

SHRI PRAVEEN PATEL:

SHRI MANOJ TIWARI:

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

- (a) whether the Government has increased the ceiling of investment and turnover for categorisation of MSMEs in the country, if so, the details thereof;
- (b) the specific mechanisms put in place to ensure that MSMEs can effectively scale up to meet the revised investment and turnover limits;
- (c) the steps taken to ensure that banks and financial institutions actually extend the enhanced credit guarantee cover guarantee cover to eligible MSMEs and startups;
- (d) the safeguards in place to prevent misuse of credit schemes or fraudulent loan applications;
- (e) whether there is any special provision for rural and women-led micro enterprises to access these credit cards easily, if so, the details thereof;
- (f) the  number  of  people  benefited  under  the  scheme,  State/UT-wise,  particularly  in  Sidhi Parliamentary Constituency; and
- (g) whether the Government has any targeted initiatives or financial support schemes specifically for MSMEs to promote entrepreneurship and industrial growth in the country, if so, the details thereof, State/UT-wise, particularly in the Bhiwani- Mahendragarh Lok  Sabha Constituency?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) and (b): The revision  in  the  definition  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  has been announced in Budget 2025. The investment and turnover limits have been revised to 2.5 and 2 times, respectively, for classification of MSMEs. The details are as given below:

| Classification   |   Current Investment in Plant and Machinery (In Rs. Cr.) |   Revised Investment in Plant and Machinery (In Rs. Cr.) |   Current Turnover (In Rs. Cr.) |   Revised Turnover (In Rs. Cr.) |
|------------------|----------------------------------------------------------|----------------------------------------------------------|---------------------------------|---------------------------------|
| Micro            |                                                        1 |                                                      2.5 |                               5 |                              10 |
| Small            |                                                       10 |                                                     25   |                              50 |                             100 |
| Medium           |                                                       50 |                                                    125   |                             250 |                             500 |

By increasing the investment and turnover limits for classification, MSMEs can achieve greater efficiencies of scale,  technological upgradation and better access to capital, while retaining the status and benefits of existing MSME schemes.

- (c) and (d): The Empowered Committee on MSMEs chaired by Reserve Bank of India monitors the loans sanctioned/ disbursed by Member Lending Institutions under the Credit Guarantee Scheme. This is also monitored by the State Level Bankers Committee.

Ministry of MSME  vide  letter no.  No.  1(12)/CLCSS/Misc/Fake  Loans  /2020-21  dated 18.09.2020  issued  advisory  to  all  MSMEs  clarifying  that  all  credit  schemes  of  the  Ministry  are implemented through Banks/Financial Institutions only.

- (e): A  new  scheme  to  provide  term  loans  up  to  Rs.2  crore  to  Women,  Scheduled  Castes  and Scheduled Tribes first-time entrepreneurs has been announced in the Union Budget 2025 for promotion and development of MSME. The Union Budget 2025 has also announced the introduction of customised Credit Card for Micro Enterprises registered on Udyam Portal.
- (f) and (g): The  Central  Government  supplements  the  efforts  of  the  State/UT  Governments  in supporting  MSMEs  through  its  various  schemes,  programmes  and  policy  initiatives,  to  promote entrepreneurship and industrial growth, including the ones for financial support. These initiatives interalia  include  schemes  such  as  Prime  Minister's  Employment  Generation  Programme  for  setting  up  of new micro enterprises in the non-farm sector by providing Margin Money subsidy on the Bank loan, Special Credit Linked Capital Subsidy  Scheme  with a provision of 25% subsidy to  SC/ST MSEs on institutional finance for procurement of Plant & Machinery/Equipment, Credit Guarantee Scheme for collateral free loans for Micro and Small Enterprises (MSEs), collateral free loans upto Rs 20 Lakh for Informal Micro Enterprises, PM Vishwakarma Yojana, Pradhan Mantri Mudra Yojana, etc.

The details of Guarantees approved for MSEs under Credit Guarantee Scheme for the country are  given  at Annexure  I and  the  data  for  the  Sidhi  Parliamentary  Constituency  and  BhiwaniMahendragarh Lok Sabha Constituency is given at Annexure II .

*****

Annexure - I Annexure referred in part (f) and (g) of answer to Lok Sabha Unstarred Question no. 3227 on 'Credit Support to MSMEs' due for reply on 20.03.2025.

## Amount Rs. Crore

| GUARANTEE APPROVED in Credit Guarantee Scheme for Micro and Small Enterprises   | GUARANTEE APPROVED in Credit Guarantee Scheme for Micro and Small Enterprises   | GUARANTEE APPROVED in Credit Guarantee Scheme for Micro and Small Enterprises   | GUARANTEE APPROVED in Credit Guarantee Scheme for Micro and Small Enterprises   |
|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| Sl.                                                                             |                                                                                 | Cumulative since Inception Till Feb 28, 2025                                    | Cumulative since Inception Till Feb 28, 2025                                    |
| No                                                                              | States / UTs                                                                    | No.                                                                             |                                                                                 |
| 1                                                                               | ANDAMAN &NICOBAR ISLANDS                                                        | 5,466                                                                           | 555                                                                             |
| 2                                                                               | ANDHRA PRADESH                                                                  | 826,239                                                                         | 25,930                                                                          |
| 3                                                                               | ARUNACHAL PRADESH                                                               | 12,482                                                                          | 1,196                                                                           |
| 4                                                                               | ASSAM                                                                           | 273,729                                                                         | 18,258                                                                          |
| 5                                                                               | BIHAR                                                                           | 535,024                                                                         | 35,215                                                                          |
| 6                                                                               | CHANDIGARH                                                                      | 36,042                                                                          | 4,266                                                                           |
| 7                                                                               | CHHATTISGARH                                                                    | 160,105                                                                         | 12,965                                                                          |
| 8                                                                               | DADRA&NAGAR HAVELI andDAMAN &DIU                                                | 5,322                                                                           | 1,198                                                                           |
| 9                                                                               | DELHI                                                                           | 207,382                                                                         | 36,372                                                                          |
| 10                                                                              | GOA                                                                             | 40,233                                                                          | 3,452                                                                           |
| 11                                                                              | GUJARAT                                                                         | 512,370                                                                         | 73,806                                                                          |
| 12                                                                              | HARYANA                                                                         | 248,325                                                                         | 32,284                                                                          |
| 13                                                                              | HIMACHAL PRADESH                                                                | 137,576                                                                         | 10,213                                                                          |
| 14                                                                              | JAMMU& KASHMIR                                                                  | 308,457                                                                         | 11,194                                                                          |
| 15                                                                              | JHARKHAND                                                                       | 276,670                                                                         | 24,358                                                                          |
| 16                                                                              | KARNATAKA                                                                       | 801,185                                                                         | 68,641                                                                          |
| 17                                                                              | KERALA                                                                          | 498,411                                                                         | 24,207                                                                          |
| 18                                                                              | LADAKH                                                                          | 2,115                                                                           | 257                                                                             |
| 19                                                                              | LAKSHADWEEP                                                                     | 583                                                                             | 19                                                                              |
| 20                                                                              | MADHYA PRADESH                                                                  | 530,746                                                                         | 41,270                                                                          |
| 21                                                                              | MAHARASHTRA                                                                     | 876,793                                                                         | 107,417                                                                         |
| 22                                                                              | MANIPUR                                                                         | 17,291                                                                          | 921                                                                             |
| 23                                                                              | MEGHALAYA                                                                       | 18,067                                                                          | 1,367                                                                           |
| 24                                                                              | MIZORAM                                                                         | 10,118                                                                          | 611                                                                             |
| 25                                                                              | NAGALAND                                                                        | 17,617                                                                          | 1,115                                                                           |
| 26                                                                              | ODISHA                                                                          | 401,422                                                                         | 28,875                                                                          |
| 27                                                                              | PUDUCHERRY                                                                      | 17,453                                                                          | 1,050                                                                           |
| 28                                                                              | PUNJAB                                                                          | 351,409                                                                         | 31,053                                                                          |
| 29                                                                              | RAJASTHAN                                                                       | 468,013                                                                         | 37,928                                                                          |
| 30                                                                              | SIKKIM                                                                          | 7,221                                                                           | 497                                                                             |
| 31                                                                              | TAMIL NADU                                                                      | 866,672                                                                         | 67,499                                                                          |
| 32                                                                              | TELANGANA                                                                       | 276,669                                                                         | 27,228                                                                          |
| 33                                                                              | TRIPURA                                                                         | 34,086                                                                          | 1,714                                                                           |
| 34                                                                              | UTTAR PRADESH                                                                   | 1,315,021                                                                       | 90,685                                                                          |
| 35                                                                              | UTTARAKHAND                                                                     | 139,880                                                                         | 9,728                                                                           |
| 36                                                                              | WEST BENGAL                                                                     | 598,879                                                                         | 51,349 884,691                                                                  |
| TOTAL                                                                           | TOTAL                                                                           | 10,835,073                                                                      |                                                                                 |

Source: Credit Guarantee Fund Trust for Micro and Small Enterprises

Annexure - II

Annexure referred in part (f) and (g) of answer to Lok Sabha Unstarred Question no. 3227 on 'Credit Support to MSMEs' due for reply on 20.03.2025.

Amount Rs. Crore

| Guarantee Approved- SIDHI Parliamentary Constituency in Credit Guarantee Scheme for Micro and Small Enterprises   | Guarantee Approved- SIDHI Parliamentary Constituency in Credit Guarantee Scheme for Micro and Small Enterprises   | Guarantee Approved- SIDHI Parliamentary Constituency in Credit Guarantee Scheme for Micro and Small Enterprises   | Guarantee Approved- SIDHI Parliamentary Constituency in Credit Guarantee Scheme for Micro and Small Enterprises   |
|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |                                                                                                                   | Cumulative since Inception as on Feb 28, 2025                                                                     | Cumulative since Inception as on Feb 28, 2025                                                                     |
| Sr. No.                                                                                                           | DISTRICT                                                                                                          | No.                                                                                                               | Amount                                                                                                            |
| 1                                                                                                                 | SHAHDOL                                                                                                           | 5,174                                                                                                             | 290                                                                                                               |
| 2                                                                                                                 | SIDHI                                                                                                             | 5,937                                                                                                             | 312                                                                                                               |
| 3                                                                                                                 | SINGRAULI                                                                                                         | 3,963                                                                                                             | 329                                                                                                               |
| Total                                                                                                             | Total                                                                                                             | 15,074                                                                                                            | 931                                                                                                               |

Source: Credit Guarantee Fund Trust for Micro and Small Enterprises

Amount Rs. Crore

| Guarantee Approved - Bhiwani- Mahendragarh Lok Sabha Constituency in Credit Guarantee Scheme for Micro and Small Enterprises   | Guarantee Approved - Bhiwani- Mahendragarh Lok Sabha Constituency in Credit Guarantee Scheme for Micro and Small Enterprises   | Guarantee Approved - Bhiwani- Mahendragarh Lok Sabha Constituency in Credit Guarantee Scheme for Micro and Small Enterprises   | Guarantee Approved - Bhiwani- Mahendragarh Lok Sabha Constituency in Credit Guarantee Scheme for Micro and Small Enterprises   |
|--------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                |                                                                                                                                | Cumulative since Inception as                                                                                                  | on Feb 28, 2025                                                                                                                |
| 1                                                                                                                              | BHIWANI                                                                                                                        | 8529                                                                                                                           | 894                                                                                                                            |
| 2                                                                                                                              | MAHENDRAGARH                                                                                                                   | 6788                                                                                                                           | 411                                                                                                                            |
| Total                                                                                                                          | Total                                                                                                                          | 15,317                                                                                                                         | 1,305                                                                                                                          |

Source: Credit Guarantee Fund Trust for Micro and Small Enterprises