Lok Sabha Question No. 2346 (UNSTARRED), answered on 2025-03-13
Subject: Increase in Credit Guarantee Cover
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Yogender Chandolia, Shri Anoop Pradhan Valmiki, Shri Tejasvi Surya, Shri Anurag Singh Thakur, Dr. Bhola Singh, Dr. Hemant Vishnu Savara, Smt. Roopkumari Choudhary, Shri Radheshyam Rathiya, Shri Damodar Agrawal, Smt. Shobhanaben Mahendrasinh Baraiya

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

## LOK SABHA UNSTARRED QUESTION NO. 2346 TO BE ANSWERED ON 13.03.2025

## INCREASE IN CREDIT GUARANTEE COVER

## 2346. SHRI YOGENDER CHANDOLIA:

SHRI ANOOP PRADHAN VALMIKI:

SHRI TEJASVI SURYA:

SHRI ANURAG SINGH THAKUR:

DR. BHOLA SINGH:

DR. HEMANT VISHNU SAVARA:

SMT. ROOPKUMARI CHOUDHARY:

SHRI RADHESHYAM RATHIYA:

SHRI DAMODAR AGRAWAL:

SMT. SHOBHANABEN MAHENDRASINH BARAIYA:

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

- (a) the manner in which the Government is likely to ensure seamless disbursal and easy access to loans for small businesses after increasing the credit guarantee cover for MSMEs from Rs. 5 crore to Rs. 10 crore, State/UT-wise particularly for entrepreneurs from Hathras;
- (b) whether the Government has taken any specific measures for effective implementation of the extended Credit Guarantee Scheme by banks and financial institutions, if so, the details thereof;
- (c) the  mechanisms  available  to  monitor  the  effective  implementation  of  the  extended  Credit Guarantee Scheme by banks and financial institutions;
- (d) the mechanism devised by the Government to allocate additional amount of Rs. 1.5 lac crore in credit to various MSME sectors/segments;
- (e) the time limit fixed for implementation of the said scheme;
- (f) whether there is any special provision for small businesses in Hathras in this regard;
- (g) the  details  of  the  impact  of  said  scheme  in  Hathras  district  along  with  the  number  of beneficiaries thereunder; and
- (h) the  share  of  the  increased  credit  guarantee  and  budget  allocation  proposed  to  be  directed towards MSMEs in Chhattisgarh and the key focus areas for support?

## ANSWER

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

(a) and (b): The enhancement of credit guarantee ceiling under Credit Guarantee Scheme (CGS) from Rs. 5 crore to Rs. 10 crore has been announced in the Budget 2025-26. Credit Guarantee Fund Trust  for  Micro  &  Small  Enterprises  (CGTMSE) provides  credit  guarantee  coverage  for  loans extended to Micro and Small enterprises (MSEs) under CGS without any collateral security or thirdparty guarantee, by its Member Lending Institutions (MLIs), across the country. CGTMSE, through Circular and awareness programmes, notifies the banks, financial institutions and MSEs.

- (c): The empowered committee on MSME chaired by Reserve Bank of India monitors the loans sanctioned/  disbursed  by  MLIs  under  the  Scheme.  This  is  also  an  agenda  item  in  the  State  Level Bankers Committee.
- (d) to (h): The Central Government supplements the efforts of the State/UT Government in the country,  including  the  State  of  Chhattisgarh  and  Hathras  District,  in  supporting  Micro,  Small  and Medium  Enterprises  (MSMEs)  through  its  various  schemes,  programmes  and  policy  initiatives, which inter alia include CGS. As announced in the Budget 2025-26, additional credit of Rs. 1.5 lakh crore is to be covered in the next 5 years w.e.f. 01.04.2025.

The details of guarantees approved in the Hathras District in last 3 years and current year are as below:

| CGTMSE-Guarantee Approved - Hathras   | CGTMSE-Guarantee Approved - Hathras   | CGTMSE-Guarantee Approved - Hathras   |
|---------------------------------------|---------------------------------------|---------------------------------------|
| FY                                    | No. of guarantees approved            | Amount approved (in Rs. crore)        |
| FY 2021-22                            | 292                                   | 24                                    |
| FY 2022-23                            | 432                                   | 47                                    |
| FY 2023-24                            | 1,112                                 | 130                                   |
| FY 2024-25 (till 28.02.2025)          | 1,533                                 | 144                                   |

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