Lok Sabha Question No. 613 (UNSTARRED), answered on 2024-07-25
Subject: Low Credit to Women led MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. Bhola Singh

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

## LOK SABHA UNSTARRED QUESTION NO. 613 TO BE ANSWERED ON 25.07.2024

## LOW CREDIT TO WOMEN LED MSMEs

## 613.               DR. BHOLA SINGH:

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

- (a) whether the Government is aware that women-led enterprises constitute only seven per cent of the outstanding credit to Micro, Small and Medium Enterprises (MSMEs) and if so, the details thereof;
- (b) the reasons for such low credit supply to women-led MSMEs compared to their proportion in the sector;
- (c) whether  there are specific initiatives/schemes to improve  access  to  credit  for  women entrepreneurs, if so, the details thereof and if not, the reasons therefor; and
- (d) the  steps  taken/being  taken  to  increase  the  labour  force  participation  among  women  and address the barriers to financial inclusion for women-led MSMEs?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI JITAN RAM MANJHI)

- (a): As  per  study  conducted  by  the  Financial  Inclusion  and  Development  Department (FIDD), Reserve  Bank  of  India  (RBI),  the  share  of  the  women  MSMEs  in  outstanding  MSME  credit  of Scheduled Commercial Banks (excluding foreign banks and Regional Rural Banks) was 7.09% as on March 31, 2023.
- (b) to (c): As per the report 'Decoding government support to women entrepreneurs in India' on NITI Aayog website published in October 2022, women-owned MSMEs face challenges in accessing credit  due  to  reasons  including  lack  of  collateral  and  tangible  assets,  limited  avenues  to  prove creditworthiness,  and  perception  biase  against  lending  to  female  entrepreneurs  or  women-  led enterprises.

Government has taken a number of initiatives to address these issues and improve access to credit for women owned enterprises. Some of these are as follows :

- i. To  support  women  entrepreneurs  under  Credit  Guarantee  Scheme  for  Micro  and  Small Enterprises,  additional  benefits,  of  10%  concession  in  annual  guarantee  fees  and  10% additional  guarantee  coverage  of  up  to  85%  as  against  the  75%  for  other  entrepreneurs,  is provided.

- ii. Ministry of MSME  implements  Prime  Minister  Employment  Generation  Programme (PMEGP),  which  is  a  major  credit-linked  subsidy  program  aimed  at  generating  selfemployment opportunities through establishment of micro-enterprises in the non-farm sector by  helping  traditional  artisans  and  rural/urban  unemployed  youth.  Of  the  total  PMEGP beneficiaries, 39% are women who are provided higher subsidy (35%) vis-a-vis non-special category (upto 25%).
- iii. Pradhan  Mantri  Mudra  Yojana  (PMMY)  was  launched  on  08.04.2015  by  Department  of Financial  Services  to  extend  collateral  free  credit  up  to  Rs.10  lakh  by  Member  Lending Institutions. Any individual, including a women can avail loan under the Scheme for income generating activities in the manufacturing, trading, service sectors including activities allied to  agriculture  across  three  loan  categories,  viz.  Shishu  (loans  up  to  Rs.  50,000/-),  Kishor (loans above Rs. 50,000/- and up to Rs. 5 lakh) and Tarun (loans above Rs. 5 lakh and up to Rs. 10 lakh).
- iv. Stand-Up  India  (SUI)  Scheme  launched  on  05.04.2016  by  Department  for  Promotion  of Industry  and  Internal  Trade  (DPIIT)  has  the  objective  to  facilitate  loans  from  Scheduled Commercial  Banks  (SCBs)  of  value  between  Rs.  10  lakh  and  Rs.  1  crore  to  at  least  one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one women borrower per bank branch  for  setting  up  greenfield  enterprise  in  manufacturing,  services  or  trading  sector including activities allied to agriculture.
- v. Ministry  of  MSME  launched  'PM  Vishwakarma'  Scheme  on  17.09.2023,  to  provide  a number of benefits to the traditional artisans and craftspeople including women, engaged in 18 trades.  The enrollment of women artisans has been 75.46% of the total enrollment under the Scheme.
- vi. Ministry of MSME launched an initiative namely 'Yashasvini', on 27.06.2024, which aims to campaign for women entrepreneurs and empower women by building their capacity, with a focus in Tier-II/III towns.

(d): Government has taken various steps to increase the labour force participation among women. The Code on Social Security, 2020 and the Code on Wages, 2019 have provisions regarding maternity benefits to women workers and non- discrimination on grounds of gender respectively. To enhance the employability  of  female  workers,  Government  is  providing  training  to  female  workers  through  a network of Women Industrial Training Institute, National Vocational Training Institute and Regional Vocational Training Institutes.

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