Lok Sabha Question No. 4455 (UNSTARRED), answered on 2026-03-19
Subject: Credit Demand in MSME Sector
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Satabdi Roy

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

LOK SABHA UNSTARRED QUESTION NO. 4455 TO BE ANSWERED ON: 19-03-2026

## CREDIT DEMAND IN MSME SECTOR

4455. SMT. SATABDI ROY:

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

- (a) whether it is a fact that the access to formal credit in the Micro, Small and Medium Enterprises (MSMEs) sector currently stands at only fourteen per cent and if so, the details thereof, and
- (b) the details of the total credit demand in the MSME sector that has remained unmet during the last eleven years, year-wise?

## ANSWER

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

(a) and (b): As informed by Reserve Bank of India, the advances outstanding to Micro, Small and Medium  Enterprises  (MSME)  sector  by  Scheduled  Commercial  Bank  have  registered  a  growth  of 166.17% in the last eleven years, as given below:

|   S No. | Financial Year   | Advances Outstanding(in Rs. crore)   |
|---------|------------------|--------------------------------------|
|       1 | As on March 2015 | 12,02,498                            |
|       2 | As on March 2016 | 12,19,962                            |
|       3 | As on March 2017 | 13,02,900                            |
|       4 | As on March 2018 | 14,14,668                            |
|       5 | As on March 2019 | 16,88,867                            |
|       6 | As on March 2020 | 16,97,836                            |
|       7 | As on March 2021 | 18,45,188                            |
|       8 | As on March 2022 | 20,44,788                            |
|       9 | As on March 2023 | 23,92,319                            |
|      10 | As on March 2024 | 28,21,477                            |
|      11 | As on March 2025 | 32,00,690                            |

Source: Priority Sector Returns submitted by SCBs (excluding Regional Rural Banks; including Local area banks)

The Government has, inter-alia, taken the following measures to improve credit penetration and reduce financial stress for MSMEs across the country:

- i. Credit Guarantee Scheme (CGS) for MSEs implemented through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide credit guarantee for loans extended to new as well as existing MSEs by Member Lending Institutions without collateral security and third-party guarantee. The ceiling for guarantee coverage is Rs. 10 crore under the scheme.
- ii. Self-Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 crore as equity funding in MSMEs with a provision of Rs. 10,000 crore from the Government of  India and Rs. 40,000 crore through Private Equity/Venture Capital Funds.
- iii. Prime Minister's  Employment  Generation Programme provides Margin  Money  subsidy  up to 35%, for setting up of new micro enterprises, in the non-farm sector with project cost of Rs. 50 lakh for Manufacturing and Rs. 20 lakh for Services enterprises.
- iv. PM Vishwakarma Scheme was launched on 17.09.2023 to provide end-to-end holistic support to artisans and craftspeople of 18 traditional trades who work with their hands and tools. The Scheme includes provision of collateral free loans up to Rs. 3 lakh with interest subvention of max up to 8%.
- v. As informed by DFS, Pradhan Mantri Mudra Yojana (PMMY) was launched on 08.04.2015 to extend collateral free credit up to Rs.20 lakh by Member Lending Institutions. Any individual, who is otherwise eligible to take a loan and has a business plan for small business enterprise can avail  loan  under  the  scheme  for  income  generating  activities  in  the  manufacturing,  trading, service sectors including activities allied to agriculture.
- vi. As informed by RBI, in  terms  of  para  4.1  (a)  of  RBI  Master  Direction  -  Lending  to  Micro, Small & Medium Enterprises (MSME) Sector dated July 24, 2017, all Scheduled Commercial Banks  are  mandated  not  to  accept  collateral  security  in  the  case  of  loans  up  to  Rs.  10  lakh extended to units in the MSE sector. As per RBI circular dated 9 th February  2026,  this  limit stands increased to Rs. 20 lakh from 1 st April, 2026.

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