Lok Sabha Question No. 184 (UNSTARRED), answered on 2026-01-29
Subject: Financial Schemes for MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Rahul Singh Lodhi

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

## LOK SABHA UNSTARRED QUESTION NO. 184 TO BE ANSWERED ON: 29.01.2026

## FINANCIAL SCHEMES FOR MSMEs

## 184. SHRI RAHUL SINGH LODHI:

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

- (a) the details of the recently implemented reforms and financial schemes to strengthen credit and capital  availability  for  Micro,  Small  and  Medium  Enterprises  (MSMEs)  including  the  Atmanirbhar Bharat Fund and the Credit Guarantee Scheme;
- (b) the amount of additional credit provided under these scheme, through these mechanisms and the number of enterprises benefitted;
- (c) the  step  taken  to  encourage  collateral-free  financing  for  MSMEs  and  to  expand  guarantee coverage; and
- (d) whether  the  government  has  developed  monitoring  mechanism  to  assess  the  effectiveness  of these financial interventions in enhancing the productivity and competitiveness of MSMEs and if so, the details thereof?

## ANSWER

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

(a) to (c): The Government of India has taken a number of initiatives to strengthen access to credit and equity for Micro, Small and Medium Enterprises (MSMEs). Some of the measures are:

- i. The Emergency Credit Line Guarantee Scheme (ECLGS) was launched in May, 2020 as part of Aatmanirbhar Bharat Abhiyaan to support eligible MSMEs and business enterprises in meeting their operational liabilities in view of disruption caused by COVID-19 pandemic. The Scheme was operational till 31.03.2023. As reported by Department of Financial Services (DFS), under ECLGS, since inception till 31.03.2023, total 1.13 crore guarantees amounting to Rs. 2.42 lakh crore have been extended to MSMEs. As per aresearch report dated 23.01.2023 of the State Bank of India on ECLGS, almost 14.6 lakh MSME accounts, of which about 98.3% of the accounts were in the Micro and Small Enterprises categories, were saved.
- ii. Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs): 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. As part of the revamp, the ceiling of guarantee coverage was enhanced from Rs. 2 crore to Rs.5 crore and the Standard Rate of the Annual Guarantee Fee (AGF) was reduced by 50%, to as low as 0.37% per annum.  Further,  the  Ministry  of  MSME,  Government  of  India,  has  enhanced  the  ceiling  of guarantee  coverage  from  Rs.5  crore  to  Rs.10  crore  and  rationalized  the  AGF  for  guarantees above  Rs.1  crore,  with  effective  from  01.04.2025.  Since  inception  in  2000,  till  31.12.2025,  a total  of  1.35crore  credit  guarantees  amounting  to  Rs.12.39  lakh  crore  have  been  approved  to MSEs.

- iii. Self  Reliant  India  (SRI)  Fund  has  been  setup  to  infuse  Rs.50,000  crore  as  equity  funding  in MSMEs. Under this Fund, there is a provision of Rs.10,000 crore from the Government of India and  Rs.40,000  crore  through  Private  Equity/Venture  Capital  Funds.  Since  its  inception  in October  2021,  as  on  31.12.2025,  69  Daughter  Funds  have  been  empanelled  with  NVCFL (Mother Fund) and these daughter funds have assisted 693 MSMEs by way of investment Rs. 16,260 crore in these MSMEs.
- iv. Prime  Minister's  Employment  Generation  Programme  provides  Margin  Money  subsidy  upto 35%, for setting up of new micro enterprises, in the non-farm sector with project cost of Rs. 50 lakh and Rs. 20 lakh, for Manufacturing and Services enterprises. Since inception i.e. FY 200809 to FY 2025-26 (up to 23.01.2026), around 10.73 lakh micro enterprises have been assisted under PMEGP with Margin Money (MM) Subsidy of Rs. 29,305.18 Cr generating employment opportunities for around 87.4 lakh persons.
- v. 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  upto  Rs.  3  lakh  by  CGTMSE  with  interest subvention  ofmax  upto  8%.  Till  27.01.2026  a  total  of  30  lakh  Vishwakarmas  has  been successfully registered under the scheme and an aggregate amount of Rs.4,670.73 crore loan has been sanctioned to 5.42 lakh beneficiaries.

(d): The Ministry of MSME through regular Review Meetings and stakeholders' consultations, track the  implementation  and  performance  of  MSME  schemes.  Recently,  MSME  Dashboard  integrated through API with all the major Schemes of the Ministry has been launched in this direction.

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