The Government has taken various measures including ongoing schemes to facilitate access to credit to MSMEs in the country. Some of these include the following:
- Prime Minister’s Employment Generation Programme (PMEGP) which is a major credit-linkedsubsidyprogrammeaimed at generatingself-employment;
- Pradhan Mantri Mudra Yojna (PMMY) for providing loans up to Rs. 10 lakh to the non- corporate, non-farm small/micro enterprises;
- PM Vishwakarma Scheme: A Central Sector Scheme with budget outlay of Rs. 13,000 crore for its implementation during the period of 2023-24 to 2027-28. The scheme envisages to provide end-to-end holistic support including credit support, to artisans and craftspeople who work with their hands, using tools, in the 18 trades covered.
- Strengthen credit delivery system and to facilitate the flow of credit to the Micro and Small Enterprise sector without the hassles of collateral and third party guarantee up to a maximum of Rs. 5 crore through Credit Guarantee Scheme for Micro and Small Enterprises;
- Launch of Udyam Assist Platform on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit of MSME for availing the benefits under Priority Sector Lending;
- Inclusion of Retail and Wholesale traders as MSMEs for the purpose of availing Priority Sector Lending benefits, w.e.f. 02.07.2021;
- Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs;
- Trade Receivable Discounting System (TReDS) to facilitate the financing of trade receivables of MSMEs from corporate and other buyers including government departments and public-sector undertakings (PSUs) through multiple financiers electronically:
- Rs. 50,000 crore equity infusion through Self Reliant India (SRI) Fund;
- Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), for businesses, including MSMEs was announced during the COVID-19 pandemic to fulfil the credit gap in MSMEs. The scheme was operational till 31.03.2023.
The key figures on the performance of Prime Minister's Employment Generation Programme(PMEGP) and Credit Guarantee Scheme for Micro and Small Enterprises during the last five years andthecurrentyear aregivenbelow:
- Prime Minister's Employment Generation Programme:
F.Y. | Units assisted | Estimated Employment Generated |
2018-19 | 73,427 | 5,87,416 |
2019-20 | 66,653 | 5,33,224 |
2020-21 | 74,415 | 5,95,320 |
2021-22 | 1,03,219 | 8,25,752 |
2022-23 | 85,167 | 6,81,336 |
2023-24 till 30.01.2024 | 65,324 | 5,22,592 |
- Credit Guarantee Scheme for Micro and Small Enterprises:
F.Y. | Number of Guarantees approved | Amt. (₹ Crore) |
2018-19 | 4,35,520 | 30,169 |
2019-20 | 8,46,650 | 45,851 |
2020-21 | 8,35,592 | 36,899 |
2021-22 | 7,17,020 | 56,172 |
2022-23 | 11,65,786 | 1,04,781 |
2023-24 till 31.12.2023 | 11,02,548 | 1,35,668 |
