Lok Sabha Question No. 4409 (UNSTARRED), answered on 2025-03-27
Subject: Credit Guarantee Scheme for MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. Nishikant Dubey, Shri Dharambir Singh, Shri Ramesh Awasthi, Shri Jaswantsinh Sumanbhai Bhabhor, Smt. Shobhanaben Mahendrasinh Baraiya, Smt. Smita Uday Wagh, Shri Pradeep Kumar Singh, Shri Anurag Sharma, Shri Manoj Tiwari, Dr. K Sudhakar, Smt. Mahima Kumari Mewar

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 4409 TO BE ANSWERED ON 27.03.2025

## CREDIT GUARANTEES SCHEME FOR MSMEs

## 4409. SHRI PRADEEP KUMAR SINGH:

DR. NISHIKANT DUBEY:

SMT. SMITA UDAY WAGH:

SMT. MAHIMA KUMARI MEWAR:

DR. K SUDHAKAR:

SHRI RAMESH AWASTHI:

SHRI ANURAG SHARMA:

SHRI JASWANTSINH SUMANBHAI BHABHOR:

SMT. SHOBHANABEN MAHENDRASINH BARAIYA:

SHRI DHARAMBIR SINGH:

SHRI MANOJ TIWARI:

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

- (a) the  number  of  credit  guarantee  requests  approved  during  the  year  2024  and  the  number  of MSMEs benefited thereof;
- (b) the financial worth of credit guarantees approved during the year 2024 and the amount of funds allocated out of the same, State-wise particularly in Gujarat;
- (c) whether the Government has launched special credit schemes for MSMEs in SC/ST population dominating areas and the number of beneficiaries of the said schemes in Gujarat;
- (d) whether  the  Government  has  implemented  any  special  scheme  or  incentive  programme  to encourage  MSMEs  run  by  the  persons  belonging  to  SC/ST  category,  if  so,  the  districts  of  Gujarat showing a greater impact thereof;
- (e) whether there has been an increase in guarantee coverage for women-owned enterprises, if so, the details thereof;
- (f) the  loan  limit  and  guarantee  coverage  provided  to  informal  micro  enterprises  without  any primary security under the special scheme for micro enterprises; and
- (g) the number of MSMEs in Bhiwani-Mahendragarh Lok Sabha Constituency that have benefited from credit guarantees in the year 2024 along with the total sanctioned amount?

## ANSWER

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

(a) and (b): The  total  number  of  guarantees  approved  in  the  Financial  Year  2023-24,  along  with amount, under Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) are as given below:

| Guarantees approved under CGS   | Guarantees approved under CGS   | Guarantees approved under CGS       |
|---------------------------------|---------------------------------|-------------------------------------|
| Duration                        | Number of Guarantees            | Amount of Guarantees (in Rs. Crore) |
| FY 2023-24                      | 17,24,073                       | 2,02,807                            |

CGS is a central sector scheme, where funds/loans are not allocated State/UT wise.

(c) and (d): Ministry  of  MSME,  Government  of  India  has  taken  various  measures  to  encourage MSMEs run by the persons belonging to SC/ST category. Some of them are:

- i. Credit Guarantee Scheme (CGS): Under CGS, credit guarantee is provided to MSEs for loans extended to them by Member Lending Institutions, without any collateral security or third-party guarantee.  The  Scheme  provides  a  10%  concession  in  Annual  Guarantee  Fees  and  higher guarantee coverage of 85% for SC/ST-owned MSEs.

Since  the  inception  of  the  scheme  in  2000,  until  28.02.2025,  24,255  guarantees  have  been approved  for  SC/ST  owned  enterprises  in  Gujarat  amounting  to  Rs.  1,125  crore.  The  highest number of 5,059 guarantees have been approved for Ahmedabad district in Gujarat amounting to Rs. 326 crore.

- ii. National Scheduled Caste and Scheduled Tribe Hub (NSSH): Under the Special Credit Linked Subsidy  Scheme  component  of  NSSH  scheme,  25%  subsidy  (subsidy  cap  of  Rs.  25  lakh)  is provided to SC-ST owned MSEs for purchase of new plant & machinery and equipment through term loan for all manufacturing sectors and service sectors.

Since the inception of the Scheme in October 2016, until 31.01.2025, financial assistance has been provided to 2,503 SC/ST beneficiaries, of whom 550 are from Gujarat. The highest number of SCLCSS beneficiaries is 352 from Surat district in Gujarat.

- iii. Prime Minister's Employment Generation Programme (PMEGP) assists entrepreneurs across the  country  in  setting  up  of  new  units  in  the  non-farm  sector.  It  aims  to  provide  employment opportunities to traditional artisans/ rural and urban unemployed  youth at their doorstep. Under the scheme, SC/ST beneficiaries can avail of Margin Money (MM) subsidy of 35% in rural areas and 25% in urban areas. The maximum cost of project is Rs. 50 lakh in the manufacturing sector and Rs. 20 lakh in the service sector.

In the current FY 2024-25 (up to 25.03.2025), 267 units belonging to SC/ST from Gujarat have been assisted with Rs. 2,297.39 lakh worth of MM subsidy and out of this, the highest number of PMEGP units of SC/ST beneficiaries assisted are 29, with a MM subsidy of Rs. 157.70 lakh in Kachchh district in Gujarat.

There are other schemes like Procurement and Marketing Support (PMS) Scheme, Entrepreneurship and Skill Development Programme (ESDP) Scheme, PM Vishwakarma Scheme, wherein there are special provisions for SC/ST beneficiaries.

- (e): There has been an increase in guarantee coverage for women-owned enterprises. The details are as given below:

| Guarantees approved for Women-owned Enterprises under CGS   | Guarantees approved for Women-owned Enterprises under CGS   | Guarantees approved for Women-owned Enterprises under CGS   |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| Duration                                                    | Number of Guarantees                                        | Amount of Guarantees (in Rs. Crore)                         |
| FY 2021-22                                                  | 1,39,244                                                    | 8,021                                                       |
| FY 2022-23                                                  | 3,65,582                                                    | 16,373                                                      |
| FY 2023-24                                                  | 4,25,865                                                    | 32,223                                                      |
| FY 2024-25 (as on 28.02.2025)                               | 5,20,327                                                    | 40,243                                                      |

- (f): Under  a  special  provision  for  Informal  Micro  Enterprises  (IMEs),  loans  up  to  Rs.  20  lakh, extended by Member Lending Institutions to IMEs, are eligible for guarantee coverage, where primary security is not mandatory. The extent of guarantee coverage is 85%.
- (g): The  details  of  the  guarantees  approved  in  the  districts  in  Bhiwani-Mahendragarh  Lok  Sabha Constituency for the Financial Year 2023-24 are as below:

| Guarantees approved under CGS during FY 2023-24   | Guarantees approved under CGS during FY 2023-24   | Guarantees approved under CGS during FY 2023-24   |
|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|
| District                                          | Number of Guarantees                              | Amount of Guarantees (in Rs. Crore)               |
| Bhiwani                                           | 1,679                                             | 240                                               |
| Mahendragarh                                      | 310                                               | 45                                                |
| Charkhi Dadri                                     | 1,242                                             | 115                                               |

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