(a) the steps taken by the Government to ensure easy flow of credit to Micro, Small
and Medium Enterprises (MSMEs) in the country;
(b) whether the Government proposes to make credit rating mandatory through the Credit
Information Bureau Limited; and
(c) if so, the details thereof along with the time by which it is likely to be done?
MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI K.H. MUNIYAPPA)
(a): To facilitate easy flow of credit to Micro, Small and Medium Enterprises (MSMEs), the
Government launched Credit Guarantee Scheme for Micro and Small Enterprises in August, 2000
under which guarantee cover is provided for collateral free credit extended to micro and small
enterprises (MSEs). In addition, the Reserve Bank of India (RBI) has issued guidelines in May,
2010, which mandatorily require banks to dispense with collateral requirement for loans upto
Rs.10 lakh to MSEs. Further, the Ministry is addressing high cost of loans by implementing
Performance and Credit Rating Scheme for Micro and Small Enterprises which provides financial
support to MSEs for getting credit rated and consequently obtain loans at concessionary rate
of interest. The Ministry also implements Prime Minister’s Employment Generation Programme
and Credit Linked Capital Subsidy Scheme, wherein margin money and capital subsidy respectively
bring down the effective cost of loan.
(b) : No Madam.
(c) : Does not arise.