Lok Sabha Question No. 554 (UNSTARRED), answered on 2025-02-06
Subject: Credit Guarantee Fund Trust for Micro and Small Enterprises
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Baijayant Panda

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

## LOK SABHA UNSTARRED QUESTION NO. 554 TO BE ANSWERED ON 06.02.2025

## CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES

554. SHRI BAIJAYANT PANDA:

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

- (a) the total number of MSMEs that have benefited from the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) during the financial year 2023-24;
- (b) the total number of MSMEs that have benefited from this scheme in Odisha and particularly in Kendrapara;
- (c) the  total  funds  allocated  and  disbursed  under  the  CGTMSE  scheme  during  the  financial  year 2024-25;
- (d) the specific steps being taken to expand access to credit for MSMEs, particularly for new and first-time entrepreneurs; and
- (e) whether the Government has a roadmap to ramp up credit guarantees to MSMEs through the CGTMSE scheme in the coming years, if so, the details thereof?

## ANSWER

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

- (a): A total of 17.24 lakh credit guarantees amounting to Rs. 2.02 lakh crore have been extended to eligible Micro and Small Enterprises (MSEs) under Credit Guarantee Scheme (CGS) being implemented by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) during the financial year 2023-24.
- (b): The details of the total  number of credit  guarantees extended to eligible MSEs under CGS in Odisha and Kendrapara during the financial year 2023-24 are as below:
- (c): No funds have been allocated by the Government to CGTMSE for the financial year 2024-25, as of now.
- (d) to (e): The details of the measures taken by Government to enhance the availability of credit to the  MSEs,  including  first-time  entrepreneurs,  and  ensure  the  reach  and  coverage  of  CGS  are  given below:
- i. Increase in guarantee ceiling from ₹2 crore to ₹5 crore.
- ii. Annual Guarantee Fee structure revised with significant reduction in the Annual Guarantee Fees from peak rate of 2% per annum to as low as 0.37% per annum.

|            | Number of guarantees approved   | Amount approved (in Rs. crore)   |
|------------|---------------------------------|----------------------------------|
| Odisha     | 56,392                          | 6,109                            |
| Kendrapara | 1,359                           | 112                              |

: 2 :

- iii. The limit for waiver of legal action was increased from Rs. 5 lakh to Rs. 10 lakh.
- iv. Concession in fee by 10% and coverage of 85% has been introduced in respect of loans given to special categories of the borrowers.
- v. The extent of guarantee coverage for women owned MSEs has been increased from 85% to 90% vide notification dated 10.12.2024.
- vi. To  promote  credit  flow  to  MSEs  in  RBI's  Identified  Credit  Deficient  Districts  (ICDD), CGTMSE offers  10%  discount  on  the  Annual  Guarantee  Fees  and  extends  an  additional  5% guarantee coverage.
- vii. CGTMSE introduced 'Special Provision for the Informal Micro Enterprises (IME)' under Credit Guarantee Scheme on 14.02.2024. The guarantee covers credit facilities up to Rs. 20 lakh with 85% coverage, with no primary security required, and a guarantee fee of 0.37% for up to Rs. 10 lakh and 0.45% for Rs. 10 lakh to Rs. 20 lakh.
- viii. As announced in Union Budget 2025-26, to improve access to credit, the credit guarantee cover will be enhanced for MSEs, from Rs. 5 crore to 10 crore.

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