New Delhi, Mar 16 (KNN) Credit disbursement to the micro, small and medium enterprises (MSME) sector by scheduled commercial banks witnessed significant growth over the past three years, reaching Rs 26.43 lakh crore in financial year 2024–25.
Minister of State for MSME Shobha Karandlaje said in a written reply in the Rajya Sabha that bank credit to MSMEs has steadily increased in recent years.
As per official data, credit disbursement to the sector stood at Rs 16.96 lakh crore in 2022–23 and rose to Rs 22.04 lakh crore in 2023–24. It further increased to Rs 26.43 lakh crore in 2024–25.
The Ministwr said that government has undertaken several initiatives to enhance credit penetration and reduce financial stress for MSMEs across the country.
Among the key measures is the Credit Guarantee Scheme (CGS) implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises, which provides collateral-free credit guarantees for loans extended by member lending institutions to new and existing micro and small enterprises. The scheme currently offers guarantee coverage for loans up to Rs 10 crore.
The government has also established the Self-Reliant India Fund with a total corpus of Rs 50,000 crore, including Rs 10,000 crore from the government and Rs 40,000 crore through private equity and venture capital funds, to provide equity funding support to MSMEs.
In addition, the Prime Minister’s Employment Generation Programme offers margin money subsidies of up to 35 per cent for setting up new micro enterprises in the non-farm sector, with project costs of up to Rs 50 lakh for manufacturing and Rs 20 lakh for service enterprises.
The government also launched the PM Vishwakarma Scheme on 17 September 2023 to provide holistic support to artisans and craftspeople engaged in 18 traditional trades, including collateral-free loans of up to Rs 3 lakh with interest subvention of up to 8 per cent.
Another key initiative is the Pradhan Mantri Mudra Yojana, launched in April 2015, which provides collateral-free loans of up to Rs 20 lakh for small businesses involved in manufacturing, trading and service activities.
The government had also implemented the Emergency Credit Line Guarantee Scheme in May 2020 as part of the Aatmanirbhar Bharat package to support MSMEs during the COVID-19 pandemic. The scheme remained operational until 31 March 2023.
(KNN Bureau)
