Lok Sabha Question No. 3463 (UNSTARRED), answered on 2023-08-10
Subject: Financial Assistance Programme
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: S.R. Parthiban

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3463 TO BE ANSWERED ON 10.08.2023

## FINANCIAL ASSISTANCE PROGRAMME

## 3463. SHRI PARTHIBAN S.R.:

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

- (a) the financial assistance programme or schemes being introduced to support the growth and development of Micro, Small and Medium Enterprises (MSMEs);
- (b) the  manner  in  which  the  Government  facilitated  access  to  credit  and  finance  for  MSMEs, particularly in terms of collateral-free loans, interest rate subsidies and credit guarantee schemes; and
- (c) the  measures  taken  by  the  Government  to  enhance  the  availability  of  skilled  labour  and promote entrepreneurship among MSMEs?

## ANSWER

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

- (a): The Government of India has taken a number of initiatives to provide financial assistance to support the growth and development of Micro, Small, and Medium Enterprises (MSMEs).  Some of them include Credit Guarantee Scheme  for Micro &  Small Enterprises, Prime Minister's Employment Generation programme, Self Reliant India Fund, Micro & Small Enterprises - Cluster Development Programme, etc.
- (b): The  Government  implements  Credit  Guarantee  Scheme  (CGS)  for  Micro  and  Small Enterprises to strengthen credit delivery system and to facilitate the flow of credit to the Micro and Small Enterprise sector without the hassles of collateral and third party guarantee up to a maximum of Rs. 500 lakh. During the COVID - 19 pandemic, the Government of India launched Emergency Credit  Line  Guarantee  Scheme,  wherein  100%  guaranteed  collateral  free  loans  were  provided  to existing eligible businesses, including MSMEs.
- (c): As  informed  by  Department  of  Financial  Services,  to  promote  entrepreneurship,  the Government of India has launched Credit Guarantee Scheme for Startups wherein the Government of India, through National Credit Guarantee Trustee Company Ltd., provides guarantee cover on loans upto  Rs.  10  crore.  Further,  the  Government  of  India  runs  Credit  Guarantee  Scheme  on  Skill Development  to  provide  guarantee  to  borrowers  on  eligible  skill  development  loans  upto  Rs.  1.5 lakh. The Ministry of MSME implements Entrepreneurship cum Skill Development programme with an  objective to motivate  the youth  representing  different sections of the society,  including SC/ST/Women, Differently abled, Ex-servicemen and BPL persons to consider self-employment or entrepreneurship as one of the career options. The ultimate objective is to promote new enterprises, capacity  building  of  existing  MSMEs  and  inculcating  entrepreneurial  culture  in  the  country.  To promote  entrepreneurship,  the  Ministry  of  MSME  implements  Prime  Minister's  Employment Generation programme. The National Institute for Entrepreneurship and Small Business Development (NIESBUD) and Indian Institute of Entrepreneurship (IIE) are autonomous organizations  under  the  aegis  of  Ministry  of  Skill  Development  &  Entrepreneurship  (MSDE) implementing  various  projects  supported  by  the  MSDE  for  promoting  entrepreneurship  in  the country wherein training followed by mentoring and handholding support is provided to the target groups to start their enterprises.

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