Lok Sabha Question No. 4518 (UNSTARRED), answered on 2025-03-27
Subject: Loan to MSME Sector
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Raja A

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

## LOK  SABHA UNSTARRED QUESTION NO. 4518 TO BE ANSWERED ON 27.03.2025

## LOAN TO MSME SECTOR

4518.

SHRI RAJA A:

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

- (a) the  details  of  loan  amounts  sanctioned  by  banks  for  small-scale  industries  in  MSME  sector during the last three years;
- (b) the efforts made by the Government to mitigate the difficulties faced by these units including access to affordable credit, technology, access to market etc.; and
- (c) whether  any  instructions  have  been  issued  to  Public  Sector  Undertakings  and  Government agencies to give preference in public procurement from MSME Units and if so, the details thereof?

## ANSWER

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

- (a): As informed by Reserve Bank of India, the amount disbursed by the Scheduled Commercial Banks (SCBs) to MSMEs during the last three financial year is as follows:

Amount (in Rs. Crore)

| Credit Disbursement by SCBs   | Credit Disbursement by SCBs   | Credit Disbursement by SCBs   | Credit Disbursement by SCBs   | Credit Disbursement by SCBs   | Credit Disbursement by SCBs   |
|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|
| SI. No.                       | Financial Year                | Micro                         | Small                         | Medium                        | Total                         |
| 1.                            | March-2022                    | 4,63,622.67                   | 4,31,696.01                   | 3,71,346.79                   | 12,66,665.47                  |
| 2.                            | March-2023                    | 6,43,150.40                   | 5,79,554.50                   | 4,74,033.35                   | 16,96,738.26                  |
| 3.                            | March-2024                    | 8,95,633.99                   | 7,16,599.44                   | 5,92,221.56                   | 22,04,454.98                  |

Source: Reserve Bank of India .

- (b): To support and strengthen the MSMEs Sector, the Government implements various measures, which inter-alia include measures for access to affordable credit, technology and marketing support. Some of them are as under:
- (i) Credit  Guarantee  Scheme  (CGS)  for  Micro  and  Small  Enterprises  (MSEs):  CGS  has  a provision  of  collateral  free  loans  of  up  to  a  limit  of  Rs.  500  lakh  to  MSEs  with  guarantee coverage up to 90%. The details  of  the  number  of  guarantees  provided  and  the  amount  of guarantees approved for MSEs under CGS are given below:

| Duration                                     | FY-2000-01 to FY -2019-2020   | FY-2020-2021 to FY-2024-2025   |
|----------------------------------------------|-------------------------------|--------------------------------|
| Number of Guarantees Approved                | 43,53,591                     | 64,81,482                      |
| Amount of Guarantees Approved (In Rs. crore) | 2,28,704                      | 6,55,987                       |

- (ii) Prime  Minister's  Employment  Generation  Programme  (PMEGP)  provides  Margin  Money subsidy upto 35% for setting up of new micro enterprises in the non-farm sector with project cost of Rs. 50 lakh and Rs. 20 lakh for Manufacturing and Services enterprises respectively.
- (iii)   Special Credit Linked Capital Subsidy Scheme (SCLCSS) provides 25% subsidy to SC/ST MSEs on institutional finance for procurement of Plant & Machinery/Equipment.
- (iv) PM  Vishwakarma  Yojana  provides  end-to-end  support  to  artisans  and  craftspeople  of  18 trades  who  work  with  their  hands  and  tools  which  includes  skilling,  modern  toolkits, subsidized credit support, marketing support, digital transaction incentives etc.
- (v) Pradhan Mantri Mudra Yojana provides loans up to Rs. 20 lakh to the non-corporate, nonfarm small/micro enterprises.
- (vi) The  network  of  Technology  Centres  /  Tool  Rooms  in  the  country  supports  MSMEs  in providing  access  to  advance  manufacturing  technologies,  training  &  skilling  and  business consultancy  services  to  make  them  competitive.  ZED  2.0  Scheme  has  been  launched  for improved efficacy of certification levels and for enhancing quality and competitiveness. To digitally  empower  MSEs,  the  Trade  Enablement  and  Marketing  Team  Scheme  has  been launched.
- (vii)   Public Procurement Policy for Micro and Small Enterprises Order, 2012, provides an assured market share to Micro and Small Enterprises (MSEs). Procurement and Marketing Support Scheme (PMSS) extends benefits to MSEs for gaining market access through participation in Trade Fairs/ Exhibitions, Vendor Development Programmes, adoption of Modern Packaging Technique, e-Commerce platforms, etc. The number of Enterprises benefitted under various components of  PMSS is as follows:

| Financial Year   |   No. of Enterprises benefitted | Expenditure (Rs. in Crore)   |
|------------------|---------------------------------|------------------------------|
| 3,276            |                           12.48 | 2020-21                      |
| 2,332            |                            5.17 | 2021-22                      |
| 22,998           |                           27.49 | 2022-23                      |
| 35,000           |                           68.69 | 2023-24                      |

(c): The Ministry of MSME notified the implementation of Public Procurement Policy for Micro and Small Enterprises Order, 2012. As per the said Policy, it is mandatory for all Central Government Ministries/  Departments/  CPSUs  to  procure  at  least  25%  of  their  annual  procurement  from  MSEs, including  4%  from  MSEs  owned  by  SC/ST  entrepreneurs  and  3%  from  MSEs  owned  by  women entrepreneurs.

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