Lok Sabha Question No. 1860 (UNSTARRED), answered on 2025-07-31
Subject: Collateral Free Loan
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Manickam Tagore B, Shri Suresh Kumar Shetkar, Shri Vijayakumar Alias Vijay Vasanth

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

## LOK SABHA UN STARREDQUESTION No. 1860 TO BE ANSWERED ON 31.07.2025

## COLLATERAL FREE LOAN

1860.

SHRI MANICKAM TAGORE B:

SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH:

SHRI SURESH KUMAR SHETKAR:

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

- (a) the number of functioning Micro, Small and Medium Enterprises (MSMEs) in the country and the number of such enterprises formally registered on the Udyam Portal;
- (b) the steps taken/being taken by the Government to address the issue of lack of access to formal credit for MSMEs particularly those located in rural areas and Tier-II and Tier-III cities;
- (c) the  number  of  MSMEs  that  have  received  collateral-free  loans  under  the  Credit  Guarantee Fund Trust  for  Micro  and  Small  Enterprises  (CGTMSE)  and  the  Pradhan  Mantri  MUDRA  Yojana (PMMY) during the last three years, State/UTs-wise particularly for the States of Tamil Nadu, Kerala, Andhra Pradesh, Karnataka and Telangana;
- (d) the  measures  taken/being  taken  to  reduce  the  delays  in  payments  from  large  corporates  and Government departments to MSMEs which directly impact their liquidity and survival;
- (e) whether  the  Government  has  evaluated  the  effectiveness  of  the  Emergency  Credit  Line Guarantee Scheme (ECLGS) in supporting micro and small enterprises during the COVID-19 period and thereafter and if so, the details thereof; and
- (f) whether the Government has any plan to improve digital and technological adoption among MSMEs to boost their competitiveness and increase credit access through alternative credit scoring and if so, the details thereof?

## ANSWER

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

- (a): Udyam  Registration Portal was launched on 01.07.2020 with the revised criteria for classification of MSMEs. As on 28.07.2025, the total number of MSMEs registered in all India on the Udyam Registration Portal including Udyam Assist Platform (from 01.07.2020 to 15.07.2025) was 6.59 Crore.
- (b) to (c): To  improve  the  impact  of  the  Credit  Guarantee  Trust  Fund  for  Micro  and  Small Enterprises  (CGTMSE)  Scheme,  the  Ministry  of  MSME,  Government  of  India,  has  introduced reduction in the Annual Guarantee Fee (AGF) by 50%, from the peak rate of 2% per annum to as low as  0.37%  per  annum  w.e.f  01.04.2023.  Recently,  the  government  has  also  enhanced  the  ceiling  of guarantee coverage from ₹5 crore to ₹10 crore and has rationalised the AGF for guarantees above ₹1 crore, with effect from 01.04.2025. Further,

- i. To promote credit flow to  MSEs in  Identified  Credit  Deficient  Districts  (ICDD)  as per RBI, CGTMSE offers  10%  discount  on  the  Annual  Guarantee  Fees  and  extend  an  additional  5% guarantee coverage.
- ii. 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.

Moreover,  to  increase  awareness  among  MSMEs  in  the  country  awareness  programmes  are conducted  by  the  field  offices  of  Ministry  of  MSME,  in  coordination  with  MSME/  Industry Departments  of  States/UTs  concerned  and  other  MSME  stakeholders  through  physical  workshops, social  media, print  media  &  electronic  media  for  creating  wide  publicity  for increasing  participation from all stakeholders.

The details of guarantees extended under the Credit Guarantee (CGS) for last three years Statewise is mentioned in the attached Annexure-I .

The  State/UTs  wise  details  of  the  number  of  loan  accounts  under  Pradhan  Mantri  Mudra Yogana (PMMY) for last three years is given in Annexure II .

(d): The Government of India has taken a number of measures to ensure timely payment settlements for  Micro  and  Small  Enterprises  (MSEs)  across  the  country.  The  Ministry  of  MSME  launched SAMADHAAN Portal on 30.10.2017 for monitoring of the outstanding dues to the MSEs. 161 Micro & Small Enterprises  Facilitation  Councils  (MSEFCs) have been set-up in States/UTs. The monetary limit  for  onboarding  on  Trade  Receivables  Discounting  System for Corporates  and  CPSEs has been reduced to a turnover of Rs. 250 Crore vide Notification S.O. 4845(E) dated 07.11. 2024. Ministry of MSME has recently launched Online Dispute Resolution (ODR) Portal on 27.06.2025 to provide endto-end digitized resolution of the delayed payment cases.

(e): Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  was launched  in  May,  2020  as  part  of Aatmanirbhar Bharat  Abhiyaan  to  support  eligible  Micro,  Small  and  Medium  Enterprises  (MSMEs) and business enterprises to ease their liquidity position. The Scheme provided for collateral free loans to existing eligible borrowers with 100% guarantee in respect of the eligible amount as per the Scheme guidelines. The Scheme was valid till 31.3.2023.

Several  impact  assessments  have  been  conducted  on  the  effectiveness  of  ECLGS.  As  per  a research  report  dated  23.1.2023  of  the  State  Bank  of  India  on  ECLGS,  almost  14.6  lakh  MSME accounts of which about 93.8% of the accounts were in the micro and small enterprises categories, have been saved from slipping into non-performing asset (NPA) classification due to ECLGS.

(f): In pursuance of the Union Budget 2024-25 announcement, Hon'ble Finance Minister launched New Credit assessment model for MSMEs. The model leverages the digitally fetched and verifiable data  and  devises  automated  journeys  for  MSME  Loan  appraisal  using  objective  decisioning  for  all loan applications and model-based limit assessment for both Existing to Bank (ETB) as well as New to Bank  (NTB)  MSME  borrowers.  The  digital  footprints  used  by  the  model  may  include    Pan authentication    using    National    Securities    Depository    Limited    (NSDL),  Mobile    and    email verification  using  OTP,  Application  Programming  Interface  (API) fetch  of GST  data  through service  providers,  Bank Statement  Analysis  using  account aggregator, ITR upload and verification, API enabled commercial and consumer bureau fetch  and  due  diligence  using  Credit  Information Companies  (CICs),  fraud  checks, through APIs, among others. The model is live with all banks with different loan amount threshold.

Government  has  taken  several  initiatives  to  promote  digital  upgradation  and  adoption  of emerging technologies for greater productivity and competitiveness among MSME across the country. These  include  Ministry  of  Electronics  and  Information  Technology  platforms  like  Digi  Locker  and India  AI  Datasets  Platform  aimed  at  empowering  MSME  to  become  resilient,  competitive  and sustainable by leveraging digital technologies, and Department of Telecommunications networks like BharatNet and PM-WANI for affordable access and last mile connectivity. Ministry of Micro, Small and  Medium  Enterprises  is  supporting  digital  empowerment  of  MSME  through  digital  registration under  Udyam, training  in  Tool  Rooms  /Technology  Centres  for  technology  adoption,  incubation  of new  ideas  and  technologies  through  MSME  Innovative  scheme  and  MSE  Green  Investment  for Financing  Transformation  scheme  for  promoting  investment  in  green  technologies.  Components  of financial incentives, capacity building and awareness are suitably embedded in the design of the above Government funded schemes.

*****

Annexure-I

Annexure referred to in reply to part (b) to (c) of Lok Sabha Unstarred Question No. 1860 for answer on 31.07.2025.

| Credit Guarantee Scheme - Number of GUARANTEES APPROVED   | Credit Guarantee Scheme - Number of GUARANTEES APPROVED   | Credit Guarantee Scheme - Number of GUARANTEES APPROVED   | Credit Guarantee Scheme - Number of GUARANTEES APPROVED   | Credit Guarantee Scheme - Number of GUARANTEES APPROVED   |
|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|
| Sl. No.                                                   | States / UTs                                              | FY 2022-23                                                | FY 2023-24                                                | FY 2024-25                                                |
| 1                                                         | ANDAMAN &NICOBAR ISLANDS                                  | 495                                                       | 600                                                       | 655                                                       |
| 2                                                         | ANDHRA PRADESH                                            | 237,520                                                   | 79,938                                                    | 110,323                                                   |
| 3                                                         | ARUNACHAL PRADESH                                         | 935                                                       | 981                                                       | 1,707                                                     |
| 4                                                         | ASSAM                                                     | 21,195                                                    | 34,556                                                    | 75,747                                                    |
| 5                                                         | BIHAR                                                     | 42,360                                                    | 113,262                                                   | 221,458                                                   |
| 6                                                         | CHANDIGARH                                                | 1,706                                                     | 2,459                                                     | 17,401                                                    |
| 7                                                         | CHHATTISGARH                                              | 17,733                                                    | 25,845                                                    | 40,583                                                    |
| 8                                                         | DADRA&NAGARHAVELI&DAMAN&DIU                               | 505                                                       | 1,039                                                     | 1,025                                                     |
| 9                                                         | DELHI                                                     | 21,458                                                    | 35,127                                                    | 55,120                                                    |
| 10                                                        | GOA                                                       | 2,826                                                     | 4,947                                                     | 6,510                                                     |
| 11                                                        | GUJARAT                                                   | 43,336                                                    | 106,073                                                   | 110,039                                                   |
| 12                                                        | HARYANA                                                   | 30,343                                                    | 48,455                                                    | 75,244                                                    |
| 13                                                        | HIMACHAL PRADESH                                          | 14,898                                                    | 20,600                                                    | 23,750                                                    |
| 14                                                        | JAMMU &KASHMIR                                            | 51,431                                                    | 53,295                                                    | 47,201                                                    |
| 15                                                        | JHARKHAND                                                 | 21,090                                                    | 34,800                                                    | 64,614                                                    |
| 16                                                        | KARNATAKA                                                 | 53,766                                                    | 135,959                                                   | 188,144                                                   |
| 17                                                        | KERALA                                                    | 25,761                                                    | 45,515                                                    | 68,755                                                    |
| 18                                                        | LADAKH                                                    | 467                                                       | 637                                                       | 709                                                       |
| 19                                                        | LAKSHADWEEP                                               | 25                                                        | 7                                                         | 23                                                        |
| 20                                                        | MADHYA PRADESH                                            | 50,289                                                    | 75,023                                                    | 131,490                                                   |
| 21                                                        | MAHARASHTRA                                               | 66,055                                                    | 129,892                                                   | 238,128                                                   |
| 22                                                        | MANIPUR                                                   | 2,268                                                     | 1,580                                                     | 1,952                                                     |
| 23                                                        | MEGHALAYA                                                 | 1,410                                                     | 1,693                                                     | 2,776                                                     |
| 24                                                        | MIZORAM                                                   | 1,032                                                     | 1,232                                                     | 1,472                                                     |
| 25                                                        | NAGALAND                                                  | 1,813                                                     | 1,563                                                     | 1,804                                                     |
| 26                                                        | ODISHA                                                    | 34,081                                                    | 56,392                                                    | 94,128                                                    |
| 27                                                        | PUDUCHERRY                                                | 1,087                                                     | 2,418                                                     | 4,471                                                     |
| 28                                                        | PUNJAB                                                    | 49,720                                                    | 81,259                                                    | 88,991                                                    |
| 29                                                        | RAJASTHAN                                                 | 72,391                                                    | 85,848                                                    | 120,424                                                   |
| 30                                                        | SIKKIM                                                    | 765                                                       | 1,108                                                     | 1,748                                                     |
| 31                                                        | TAMIL NADU                                                | 61,883                                                    | 113,815                                                   | 179,817                                                   |
| 32                                                        | TELANGANA                                                 | 29,792                                                    | 41,940                                                    | 97,292                                                    |
| 33                                                        | TRIPURA                                                   | 3,845                                                     | 6,523                                                     | 8,398                                                     |
| 34                                                        | UTTAR PRADESH                                             | 130,769                                                   | 247,258                                                   | 403,938                                                   |
| 35                                                        | UTTARAKHAND                                               | 16,296                                                    | 26,361                                                    | 26,268                                                    |
| 36                                                        | WEST BENGAL                                               | 54,440                                                    | 106,073                                                   | 203,170                                                   |
|                                                           | TOTAL                                                     | 1,165,786                                                 | 1,724,073                                                 | 2,715,275                                                 |

Annexure-II

Annexure referred to in reply to part (b) to (c) of Lok Sabha Unstarred Question No. 1860 for answer on 31.07.2025.

| PMMY- State/UT wise number of A/Cs   | PMMY- State/UT wise number of A/Cs   | PMMY- State/UT wise number of A/Cs   | PMMY- State/UT wise number of A/Cs   | PMMY- State/UT wise number of A/Cs   |
|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
| Sl. No                               | State/UTs                            | 2022-23                              | 2023-24                              | 2024-25                              |
| 1                                    | Andaman and Nicobar Islands          | 3463                                 | 3131                                 | 3027                                 |
| 2                                    | Andhra Pradesh                       | 1348593                              | 1588682                              | 1464680                              |
| 3                                    | Arunachal Pradesh                    | 17193                                | 26431                                | 36567                                |
| 4                                    | Assam                                | 599213                               | 722225                               | 1216262                              |
| 5                                    | Bihar                                | 8489231                              | 9631277                              | 7771213                              |
| 6                                    | Chandigarh                           | 17261                                | 15585                                | 15724                                |
| 7                                    | Chhattisgarh                         | 1114927                              | 1035574                              | 1016177                              |
| 8                                    | Dadra and Nagar Haveli               | 4469                                 | 3792                                 | 3936                                 |
| 9                                    | Daman and Diu                        | 1043                                 | 1194                                 | 2292                                 |
| 10                                   | Delhi                                | 337476                               | 315625                               | 199513                               |
| 11                                   | Goa                                  | 42745                                | 42505                                | 27585                                |
| 12                                   | Gujarat                              | 1784437                              | 1960464                              | 1570182                              |
| 13                                   | Haryana                              | 1218808                              | 1095972                              | 800080                               |
| 14                                   | Himachal Pradesh                     | 151733                               | 146471                               | 110348                               |
| 15                                   | Jharkhand                            | 2056159                              | 2129193                              | 1668829                              |
| 16                                   | Karnataka                            | 5592066                              | 6458940                              | 4943477                              |
| 17                                   | Kerala                               | 1781474                              | 1973469                              | 1944890                              |
| 18                                   | Lakshadweep                          | 1623                                 | 2309                                 | 2258                                 |
| 19                                   | Madhya Pradesh                       | 3701661                              | 3445475                              | 3302774                              |
| 20                                   | Maharashtra                          | 5253324                              | 5279979                              | 4462791                              |
| 21                                   | Manipur                              | 39744                                | 10666                                | 11452                                |
| 22                                   | Meghalaya                            | 24937                                | 31633                                | 35308                                |
| 23                                   | Mizoram                              | 23394                                | 28729                                | 26463                                |
| 24                                   | Nagaland                             | 15172                                | 21014                                | 32002                                |
| 25                                   | Odisha                               | 3922511                              | 3761546                              | 2793890                              |
| 26                                   | Pondicherry                          | 98394                                | 133357                               | 85730                                |
| 27                                   | Punjab                               | 1259891                              | 1039309                              | 707516                               |
| 28                                   | Rajasthan                            | 2977440                              | 2693556                              | 2163626                              |
| 29                                   | Sikkim                               | 13805                                | 19290                                | 19185                                |
| 30                                   | Tamil Nadu                           | 6406513                              | 7204001                              | 4536967                              |
| 31                                   | Telangana                            | 639323                               | 947059                               | 1137388                              |
| 32                                   | Tripura                              | 350659                               | 324797                               | 348747                               |
| 33                                   | Union Territory of Jammu and Kashmir | 330963                               | 366142                               | 399396                               |
| 34                                   | Union Territory of Ladakh            | 9988                                 | 11013                                | 12197                                |
| 35                                   | Uttar Pradesh                        | 6808721                              | 7679518                              | 5924230                              |
| 36                                   | Uttarakhand                          | 445328                               | 445218                               | 338119                               |
| 37                                   | West Bengal                          | 5426916                              | 6181872                              | 5526827                              |
| Total                                | Total                                | 62310598                             | 66777013                             | 54661648                             |