Allocation of funds to MSMEs

New Delhi : The Government of India has taken various measures to strengthen the MSME sector under Aatmanirbhar Bharat Abhiyan (ABA), which includes Rs.3 Lakh crore Collateral-Free Automatic Loans for businesses, Rs. 20,000 crore subordinate debt for stressed MSMEs, Rs. 50,000 crore equity infusion through MSME Fund of Funds, no global tenders for procurement upto Rs. 200 crores along with revision of definition of MSME, etc.

Further, as on 02.07.2021, an amount of Rs. 2.73 lakh crore have been sanctioned under Emergency Credit Line Guarantee Scheme (ECLGS) in the country, including Tamil Nadu, of which an amount of Rs. 2.14 lakh crore has been disbursed.

All proposals that are eligible under the relevant guidelines for a collateral free loan are generally accepted. However, Ministry of Micro, Small and Medium Enterprises (MSME) sometimes receives complaint regarding denial of collateral free loan by the banks. As there is a prescribed procedure for obtaining a collateral free loan, such complaints received in the Ministry of MSME, are accordingly forwarded to concerned bank for consideration as per the rule/procedure.

This information was given by Union Minister for Micro, Small and Medium Enterprises, Narayan Rane in a written reply in Rajya Sabha today.

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