Question : Loans to MSMEs

(a) whether Micro, Small and Medium Enterprises (MSMEs) heavily contributing to Indian economy are still facing the problem of not getting loans through banking sector and if so, the details thereof;

(b) the approval limit of loans to be provided under this scheme;

(c) whether the Government has signed any agreement with the commercial banks to provide loans to MSMEs under this scheme, if so, the details thereof; and

(d) whether the Government has recently formulated any action plan to increase the number of MSMEs and to benefit them and if so, the details thereof?

MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)

(a) to (d): As reported by Reserve Bank of India, the Scheduled Commercial Banks have outstanding credit to 320.68 lakh MSMEs in the year ending March, 2019. In order to increase the number of MSMEs, Government has taken various initiatives specifically to ease the access to finance. These include Prime Minister’s Employment Generation Programme, Credit Linked Capital Subsidy Scheme, Credit Guarantee Scheme, Interest Subvention Scheme, 59 minutes loan portal etc. These initiatives are aimed at providing margin money subsidies, collateral free loan, cost-effective and faster availability of credit.