Lok Sabha Question No. 3649 (UNSTARRED), answered on 2023-08-10
Subject: Hassle Free Loan to Small Businesses
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ramesh Bidhuri

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

## LOK SABHA UNSTARRED QUESTION NO. 3649 TO BE ANSWERED ON 10.08.2023

## HASSLE FREE LOAN TO SMALL BUSINESSES

3649.               SHRI RAMESH BIDHURI:

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

- (a) whether  the  Government  has  taken  any  steps  for  providing  hassle  free  loan  to  small businesses in the country;
- (b) if so, the details thereof;
- (c) the number of applications received under Stand-Up India scheme along with the total funds disbursed so far; and
- (d) the  steps  taken  for  the  development  of  non-corporate,  small  and  micro  businesses  in  the country?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a), (b) & (d):         The  Government of  India has taken many steps to provide hassle free loan to develop Micro, Small and Medium Enterprises (MSMEs) in the country.  Some of them are given below:

- i. Priority  Sector  Lending  Guidelines:  In  terms  of  Master  Direction  on  'Priority  Sector Lending (PSL) - Targets and Classification' dated September 4, 2020, all bank loans to MSMEs conforming to the conditions prescribed  therein qualify for  classification  under Priority Sector Lending.
- ii. Collateral requirements of MSME units: Scheduled Commercial Banks (SCBs) have been mandated not to accept collateral security in the case of loans up to ₹10 lakh extended to units in Micro & Small Enterprises category. RBI issued circular No. RPCD.SME & NFS. BC. No. 79/06.02.31/2009-10 dated May 6, 2010.
- iii. CGTMSE provides credit guarantee to its Member Lending Institutions for loans extended by  them  to  Micro  and  Small  Enterprises  without  any  collateral  security  and  third  party guarantee.
- iv. With  effect  from  01.04.2023,  the  credit  limit  for  Guarantee  Coverage  under  Credit Guarantee Scheme for Micro & Small Enterprises has been enhanced from ₹ 2 crore to ₹ 5 crore and the annual guarantee fees have been reduced by 50%.
- i. Under  the  revised  guidelines  of  Prime  Minister's  Employment  Generation  programme (PMEGP)  issued  on  13.05.2022,  the  project  cost  for  Manufacturing  and  Services  have been enhanced to Rs. 50.00 Lakh and Rs. 20.00 Lakh, respectively from Rs. 25.00 Lakh and Rs. 10.00 Lakh.

- vi. Under Aatmanirbhar Bharat, the Government of India has  announced Self Reliant  India Fund to infuse equity in MSMEs which have the potential and viability to grow.
- vii.    New  revised  composite  criteria  of  Investment  &  turnover  for  classification  of  MSMEs adopted on 26.06.2020.
- viii. No global tenders for procurement up to Rs. 200 crore.
- ix. 'Udyam Registration' for MSMEs, for Ease of Doing Business w.e.f. 01.07.2020.
- x. Launch  of  Udyam  Assist  Platform  on  11.01.2023  to  bring  Informal  Micro  Enterprises under the formal ambit for availing the benefits under Priority Sector Lending.

(c): As reported by Department of Financial Services (DFS), a total number of 2,11,501 loan applications  have  been  received  in  which  1,90,897  loans  have  been  sanctioned  to  women  and SC/ST entrepreneurs in the country under Stand Up India Scheme and an amount of Rs. 20,541 crore has been disbursed.

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