Lok Sabha Question No. 3435 (UNSTARRED), answered on 2026-03-12
Subject: Delay in Disbursing Loans under PMEGP
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Bhaskar Murlidhar Bhagare

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 3435 TO BE ANSWERED ON 12.03.2026

## DELAY IN DISBURSING LOANS UNDER PMEGP

## 3435.  SHRI BHASKAR MURLIDHAR BHAGARE:

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

- (a) whether the Government has examined the persistent and disproportionate delays in sanctioning and  disbursing  loans  under  the  Prime  Minister's  Employment  Generation  Programme  (PMEGP)  in Tribal and Scheduled Area districts of Maharashtra, including the average time taken from application to final disbursement, district-wise and if so, the details thereof;
- (b) whether the Government is aware that a large number of PMEGP applications in tribal districts such  as  Nandurbar,  Gadchiroli,  Palghar  and  parts  of  Nashik  remain  pending  for  prolonged  periods, leading  to  cost  escalation,  beneficiary  withdrawals  and  low  conversion  of  approvals  into  functional enterprises and if so, the details thereof;
- (c) whether data has been compiled on rejection rates, repeated documentation demands and bankwise performance in these tribal districts;
- (d) the  steps  taken  to  address  structural  bottlenecks  in  bank  appraisal,  credit  aversion  and  interagency coordination in tribal Maharashtra; and
- (e) whether a State-specific accountability and monitoring mechanism is proposed to ensure timely, transparent and inclusive PMEGP loan sanctions in tribal areas and if so, the details thereof?

## ANSWER

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

(a) and (b): The  Government  is  implementing  the  Prime  Minister's  Employment  Generation Programme  (PMEGP)  through  the  Khadi  &  Village  Industries  Commission  (KVIC)  and  regularly reviews  its  implementation  includingdelays  in  loan  sanctioning  and  disbursementacross  the  country including  in  the  Tribal  and  Scheduled  Area  districts  of  Maharashtra.  Under  PMEGP,  the  final sanctioning of projects and release of loans are done by the concerned financing banks after appraising the  viability  of  each  project.  State  Level  Bankers  Meetings  and  District  level  Bankers  Meetings  are heldto ensure proper sanctioning of loans  and  disbursement. Further, State  Level  Monitoring Committee (SLMC) and District Level Monitoring Committee (DLMC) meetings are held at State and District levels on a regular basis to monitor and review the scheme's implementation. As per available data, the average turnaround time for disbursement of loan after loan sanction has come down from 42 days in FY 2023-24 to 27 days in FY 2025-26 at a National level.

(c): Under PMEGP, key performance parameters of the scheme including bank-wise performance, rejection rates of applications along with detailed reasons for rejection as recorded by the banks etc. across  the  country  including  in  the  tribal  districts  of  Maharashtra  are  being  tracked  and  compiled through the online PMEGP portal.

(d) and (e): Recent  steps  undertaken  to  address  structural  bottlenecks  in  bank  appraisal,  credit aversion and inter-agency coordination including state-specific monitoring mechanisms under PMEGP include the following:

- i. Top level Banker's meetings, State Level Bankers Meetings and District level Bankers Meetings are held on a regular basis to ensure proper sanctioning of loans and disbursement of margin money.
- ii. State Level Monitoring Committee and District Level Monitoring Committee meetings held at State  and  District  levels  on  a  regular  basis  to  monitor  and  review  the  implementation  of PMEGP.
- iii. Review of rejection reasons by Banks and removal of reasons i.e. "Out of Service Area" and "Target Achieved" as basis for rejection of PMEGP applications by banks.
- iv. A wide range of more than 1,000 model Detailed Project Reports have been prepared on various industries and made available on the PMEGP online portal to improve quality of proposals.
- v. Regular participation of Banks in applicant awareness and outreach programmes organised by Implementing Agencies to identify potential beneficiaries and provide necessary guidance and handholding support during the application process.
- vi. Financial literacy camps and customer awareness programmes conducted by Banks to educate prospective entrepreneurs about various initiatives of the Government, including PMEGP.

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