Lok Sabha Question No. 3331 (UNSTARRED), answered on 2016-08-05
Subject: Loans to MSMEs
Ministry: FINANCE
Asked by: ARVIND GANPAT SAWANT, SHYAMA CHARAN GUPTA, NARAMALLI SIVAPRASAD, GOPAL CHINAYYA SHETTY, DODDAALAHALLI KEMPEGOWDA SURESH

:

- (a)  Whether  the  Micro,  Small  and  Medium  Enterprises  (MSMEs)  are  facing difficulties in collection of payments amid a slowdown in economic growth and if so, the details thereof;
- (b)  whether the banks have served recovery/auction notices to any MSMEs in the recent past and if so, the details thereof, State-wise;
- (c) The number of beneficiaries/amount of credit provided under the credit guarantee scheme, credit linked capital subsidy scheme, State-wise including Andhra Pradesh;
- (d)  whether  loans  to  MSMEs  are  provided  at  higher  interest  rates  and  if  so,  the details thereof; and
- (e)  the  steps  taken/being taken by the Government/banks to extend easy loans to MSMEs ?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

- (a)  Information in this regard is not centrally maintained.
- (b) In all cases where recoveries are to be made, notices under various provisions of relevant acts are issued by banks/Financial Institutions (FIs).  Record of such notices are not maintained centrally.
- (c) State-wise details of number of beneficiaries/amount of credit provided under credit guarantee  scheme  and  credit  linked  capital  subsidy  scheme  (including  Andhra Pradesh), are given in the enclosed Annexure I & II.
- (d) Loans to Micro, Small and Medium Enterprises (MSMEs) are provided as per the interest  rate  structure  of  the  bank.  The  interest  rate  is  finalised  based  on  various factors which inter-alia include, cost of funds to the institution, credit rating of the unit, tenure of loan, purpose of loan etc.
- (e) Government has taken several steps to extend easy loans to MSME, which interalia include, advise to all Scheduled Commercial Banks (SCBs) to achieve a 20% year-on-year growth in credit to MSEs to ensure enhanced credit flow, allocation of 60% of the MSEs advances to the micro enterprise accounts, a 10% annual growth in number of micro enterprise accounts, adoption of one cluster, operationalising at least one specialised MSME Branch in every district etc. In addition, a target of 7.5% of Adjusted Net Bank Credit (ANBC) has been prescribed for Micro Enterprises.
- SCBs have been mandated not to accept collateral security in the case of loans up to Rs.10 lakh extended to units in the MSE sector and computation of working capital requirements of MSE units has been simplified to make it minimum 20% of the projected annual turnover of the unit.

## Details of State-wise Guarantee Issued upto 31st March 2016

| SNo.   | State Name        | Proposals   | Guarantee Issued Amount (in   |
|--------|-------------------|-------------|-------------------------------|
|        |                   |             | Rs. Lakh)                     |
| 1      | ANDAMAN & NICOBAR | 1705        | 8477.01                       |
| 2      | ANDHRA PRADESH    | 64920       | 186022.74                     |
| 3      | ARUNACHAL PRADESH | 5468        | 25469.39                      |
| 4      | ASSAM             | 74557       | 251498.28                     |

| 5     | BIHAR                |   105003 |        447064.42 |
|-------|----------------------|----------|------------------|
| 6     | CHANDIGARH           |     4489 |  29230.3         |
| 7     | CHHATTISGARH         |    26654 | 148572           |
| 8     | DADRA & NAGAR HAVELI |      376 |   9347.09        |
| 9     | DAMAN & DIU          |      332 |   8257.46        |
| 10    | DELHI                |    22054 | 246615           |
| 11    | GOA                  |    13815 |  85136.4         |
| 12    | GUJARAT              |    85167 | 713108           |
| 13    | HARYANA              |    26486 | 201709           |
| 14    | HIMACHAL PRADESH     |    38824 | 211650           |
| 15    | JAMMU & KASHMIR      |    46764 | 107641           |
| 16    | JHARKHAND            |    82307 | 486236           |
| 17    | KARNATAKA            |   186529 | 937301           |
| 18    | KERALA               |   201566 | 485626           |
| 19    | LAKSHA DEEP          |      266 |    748.14        |
| 20    | MADHYA PRADESH       |    70854 | 373906           |
| 21    | MAHARASHTRA          |   150361 |      1.1045e+06  |
| 22    | MANIPUR              |     5012 |  15387.5         |
| 23    | MEGHALAYA            |     6408 |  29312.3         |
| 24    | MIZORAM              |     2723 |  10655.1         |
| 25    | NAGALAND             |     4710 |  15737.3         |
| 26    | ORISSA               |    99988 | 415653           |
| 27    | PONDICHERRY          |     3383 |  12288           |
| 28    | PUNJAB               |    43822 | 258304           |
| 29    | RAJASTHAN            |    67924 | 347755           |
| 30    | SIKKIM               |     1602 |   6746.07        |
| 31    | TAMILNADU            |   195540 | 808545           |
| 32    | TELANGANA            |    38089 | 213997           |
| 33    | TRIPURA              |     8549 |  29116.4         |
| 34    | UTTAR PRADESH        |   230904 | 987040           |
| 35    | UTTARAKHAND          |    26952 | 135542           |
| 36    | W B                  |   128902 | 598251           |
| Total | Total                |  2073005 |      9.95245e+06 |

Source : CGTMSE

## Credit Linked Capital Subsidy Scheme

State-wise break-up of subsidy released since inception under CLCSS through SIDBI till March 31, 2016

| State                  |   No. of Units |   Term Loan (Rs Lakh) |   Subsidy (Rs. Lakh) |
|------------------------|----------------|-----------------------|----------------------|
| Andhra Pradesh         |           1031 |              62608.2  |              7128.02 |
| Assam                  |              1 |                 60    |                 8.8  |
| Bihar                  |              2 |                 68    |                 7.41 |
| Chandigarh             |             92 |               2439.61 |               463.94 |
| Chhattisgarh           |            217 |              11990.5  |              1377.74 |
| Dadra and Nagar Haveli |             44 |               3890.39 |               394.75 |
| Daman and Diu          |             45 |               2855.81 |               325.76 |
| Delhi                  |            219 |              14261.2  |              1623.04 |
| Goa                    |             38 |               1955.86 |               198.69 |
| Gujarat                |           7570 |             350068    |             43891.7  |
| Haryana                |           1398 |              69440.6  |              9172.75 |
| Himachal Pradesh       |             18 |               3018    |               153.26 |
| Jammu and Kashmir      |              1 |                 14    |                 1    |
| Jharkand               |             78 |               4335.55 |               560.84 |
| Karnataka              |           2231 |              78819.5  |             11503.8  |
| Kerala                 |            155 |              11122.1  |              1245.87 |
| Madhya Pradesh         |            197 |              10505.6  |              1227.48 |
| Maharashtra            |           4593 |             228335    |             28082.9  |
| Odisha                 |            142 |              10312    |               937.15 |
| Puducherry             |             24 |               1233    |               193.58 |
| Punjab                 |           1838 |              70987    |             10822.2  |
| Rajasthan              |            933 |              58034.8  |              5465.16 |
| Tamil Nadu             |           2514 |              84672.5  |             11510.3  |
| Telangana              |             86 |               8570.58 |               814.99 |

| Tripura       |     3 |           39.00 |      6.65 |
|---------------|-------|-----------------|-----------|
| Uttar Pradesh |   485 | 26016.2         |   3057.88 |
| Uttarakhand   |    38 |  3876.62        |    337.54 |
| West Bengal   |   134 | 12898           |   1202.71 |
| Total         | 24127 |     1.13243e+06 | 141716    |

Source : SIDBI