Lok Sabha Question No. 1669 (UNSTARRED), answered on 2024-08-01
Subject: Complementary Schemes for Utilization of Loans
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. Gumma Thanuja Rani

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

## LOK SABHA UNSTARRED QUESTION NO. 1669

TO BE ANSWERED ON 01.08.2024

## COMPLEMENTARY SCHEMES FOR UTILIZATION OF LOANS

1669.

DR. GUMMA THANUJA RANI:

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

- (a) whether the schemes like 'Jagana  Thodu' in  Andhra  Pradesh  providing  interest-free  loans  to vendors and artisans have enhanced productivity and if so, the details thereof;
- (b) the details of the complementary schemes initiated by the Government for better utilization of such loans; and
- (c) whether the Government proposes to introduce additional complementary schemes if existing ones are unsatisfactory and if so, the details thereof?

## ANSWER

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

(a) to (c): The Central Government supplements the efforts of the State/UT Governments through various schemes, programmes and policy initiatives for overall development and promotion of Micro, Small and Medium Enterprises (MSMEs) in the country. These initiatives include support to MSME Sector for access to credit at a low/ affordable level.

PM SVANidhi has been launched to facilitate collateral free working capital loan to the street vendors across the country. During the FY 2023-24, 28,64,412 beneficiaries have been disbursed an amount of Rs. 2,857.25 crore under PM SVANidhi Scheme. Government of Andhra Pradesh launched Jagananna Thodu Scheme for providing Financial Assistance up to Rs.10,000 through Banks towards the  working  capital  to  Street  Vendors  and  Traditional  Artisans.  In  FY  2023-24,    12.01  lakh beneficiaries were provided a loan amount of Rs. 1,264.89 crore. It has been informed that the studies show that the Jagananna Thodu had effectively helped in meeting the working capital needs of the beneficiaries.

Further, the following initiatives have also been undertaken in this direction:

- i. Collateral  free  loan  up  to  a  limit  of  Rs.  500  lakh  to  Micro  and  Small  Enterprises,  with guarantee  coverage  up  to  85  %  for  various  categories  of  loan,  is  provided  under  Credit Guarantee  Scheme.  Since  inception  of  the  scheme  till  30.06.2024,  91.76  lakh  guarantees approved involving an amount of Rs. 6.78 lakh crore.
- ii. Prime Minister's Employment Generation Programme (PMEGP) for assisting entrepreneurs in setting  up  of  new  micro  units  in  the  non-farm  sector.  A  loan  of  upto  Rs.  50  lakh  for manufacturing sector and Rs. 20 lakh for service sector is provided under the scheme. Since inception,  more  than  9.69  lakh  micro  enterprises  have  been  assisted  with  a  Margin  Money subsidy of more than Rs 25,500 crore providing employment to an estimated 79 lakh persons.
- iii. The PM Vishwakarma Scheme was launched by the Hon'ble Prime Minister on 17.09.2023. The Scheme aims to provide end-to-end support to artisans and craftspeople including credit support at 5% interest rate alongwith guarantee coverage.

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