Lok Sabha Question No. 1987 (UNSTARRED), answered on 2025-12-11
Subject: Accessible Lending Facilities to MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Adhikari Soumendu

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

## LOK SABHA UNSTARRED QUESTION NO. 1987 TO BE ANSWERED ON: 11.12.2025

## ACCESSIBLE LENDING FACILITIES TO MSMEs

## 1987. SHRI ADHIKARI SOUMENDU:

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

- (a) whether  the  Government  has  introduced  various  schemes  to  enhance  competitiveness  and accessible lending facilities with support from different Ministries for the Micro, Small and Medium Enterprises (MSMEs) sector in the country;
- (b) if  so,  the  details  of  present  schemes  and  maximum  loan  funding  facilities  for  purposes  of working capital, expansion and technology upgrades both in terms or with and without collateral and term deposits therefor;
- (c) the growth in terms of number, funding and employment in MSME sector during the last three years including repayment status therein; and
- (d) the report of World Bank's 'Ease of Doing Business' index and its comparative review in terms of India thereof?

## ANSWER

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

(a) & (b): The  Government  of  India  has  taken  a  number  of  initiatives  and  measures  to  provide support  to  Micro,  Small  and  Medium  Enterprises  (MSMEs)  for  improving  access  to  finance,  timely payments and faster technology adoption. Some of them are:

- i. Ministry  of  MSME  implements  Credit  Guarantee  Scheme  (CGS)  for  MSEs  through  Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide credit guarantee for loans  (revised  to  loans  upto  Rs  10  crore  w.e.f  01.04.2025)  extended  by  Member  Lending Institutions to new as well as existing MSEs without collateral security and third-party guarantee. To expand the scope of the Scheme and to ensure greater access to credit for MSEs, CGS was revamped  effective  from  01.04.2023,  following  a  corpus  infusion  of  Rs.  9,000  crore  into CGTMSE. Further, the Standard Rate of the Annual Guarantee Fee (AGF) was reduced by 50%, to as low as 0.37% per annum.
- 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 loans up to Rs.3 lakh with interest subvention of max up to 8%.
- v. Ministry of MSME implements MSME Champions scheme with a Holistic Approach to unify, synergize,  and  converge  various  schemes  and  Interventions  with  a  single  purpose.  The  end objective  is  to  pick  up  enterprises  and  modernize  their  processes,  reduce  wastages,  sharpen business competitiveness, and facilitate their National and Global reach and excellence. There are 3  components under the MSME Champions scheme which includes MSME-Sustainable (ZED) Certification  Scheme,  MSME-Competitive  (Lean)  Scheme,  MSME-Innovative  (Incubation, Design & IPR) Scheme.
- vi.  RBI  issued  guidelines  for  Trade  Receivables  Discounting  System  (TReDS)  to  facilitates  the financing of trade receivables of MSMEs from corporate and other buyers, including Government Departments and Public Sector Undertakings (PSUs) through multiple financiers electronically.
4. (c): The following data highlights the growth in terms of number, funding, and employment within the MSME sector under major schemes of the Ministry of MSME over the past three years:

| SRI Fund   | SRI Fund                        | SRI Fund      | SRI Fund       | SRI Fund                                            |
|------------|---------------------------------|---------------|----------------|-----------------------------------------------------|
| FY         | Fund allocated/ sanctioned (RE) | Fund Released | Funds utilised | Funds (Rs. In crore) Estimated employment generated |
| 2022-23    | 392.79                          | 392.79        | 392.79         | 35,751                                              |
| 2023-24    | 579.45                          | 579.45        | 553.78         | 51,807                                              |
| 2024-25    | 575.00                          | 575.00        | 575.00         | 25,440                                              |

| CGTMSE - Guarantee Approved (All India)   | CGTMSE - Guarantee Approved (All India)   | CGTMSE - Guarantee Approved (All India)   | CGTMSE - Guarantee Approved (All India)   |
|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|
| FY                                        | No. of Guarantees Approved                | Amt. of Guarantees Approved in Crore      | Estimated Employment Generated            |
| 2022-23                                   | 11,65,786                                 | 1,04,781                                  | 23,72,984                                 |
| 2023-24                                   | 17,24,073                                 | 2,02,807                                  | 48,19,859                                 |
| 2024-25                                   | 27,15,275                                 | 3,05,507                                  | 72,94,989                                 |

| PMEGP   | PMEGP                 | PMEGP                                              | PMEGP                          |
|---------|-----------------------|----------------------------------------------------|--------------------------------|
| FY      | No. of Units Assisted | Margin Money (MM) Subsidy disbursed (Rs. In crore) | Estimated Employment Generated |
| 2022-23 | 85,167                | 2,722.17                                           | 6,81,336                       |
| 2023-24 | 89,118                | 3,093.87                                           | 7,12,944                       |
| 2024-25 | 59,708                | 2,202.00                                           | 4,77,664                       |

(d): The  Government  has,  inter-alia,  taken  followings  steps  to  address  regulatory  hurdles  and improve ease of doing business for MSMEs:

- (i) Udyam Registration Portal  was  launched  on  01.07.2020  to  facilitate  ease  of  registration  for MSMEs. The process of registration on Udyam is fully online, paperless and based on selfdeclaration.  The  Ministry  in  association  with  Small  Industries  Development  Bank  of  India launched  Udyam  Assist  Platform  on  11.01.2023,  for  bringing  Informal  Micro  Enterprises (IMEs)  into  the  formal  ambit.  This  has  helped  the  registered  IMEs  to  avail  the  benefits  of Priority Sector Lending.
- (ii) The  Ministry  of  MSME  reduced  the  compliance  burden  on  business  as  well  as  on  citizens related  to  Public  Procurement  Policy  for  Micro  and  Small  Enterprises  Order,  2012  vide Notification No. S.O. 3237(E) dated 11.08.2021 as identified by the Department for Promotion of  Industry and Internal Trade (DPIIT).
- (iii)   As informed by DPIIT, National Single Window System has been developed, which integrates the existing clearance/regulatory systems of various Ministries/ Departments of Government of India and State Governments.

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