Credit Guarantee of Rs 13 Lakh Crore to Micro and Small Enterprises

New Delhi, India Jul 1, 2026 ALN: The Indian government has extended credit guarantees amounting to Rs 13 lakh crore to micro and small enterprises (MSEs) over the past few years. This initiative aims to bolster the financial stability of these businesses, which are crucial to the . A senior official emphasized the government's commitment to monitoring delayed payments to MSEs, recognizing it as a persistent challenge that needs urgent attention.

Emergency Credit Line Guarantee Scheme (ECLGS)

The Emergency Credit Line Guarantee Scheme (ECLGS) was introduced in May 2020 to assist eligible MSEs in managing their operational liabilities and facilitating business recovery amid the disruptions caused by the COVID-19 pandemic. This scheme has significantly enhanced the credit inflow into the MSE sector.

Growth in Credit Inflow

According to MSME Secretary Bharat Khera, the credit inflow to the MSE sector has seen a remarkable increase. In 2014, the total credit inflow was approximately Rs 10 lakh crore, which has surged to Rs 37 lakh crore today, marking an increase of about 300 percent. Khera noted that both debt and equity financing are essential for the growth of MSEs.

Monitoring Delayed Payments

Addressing the issue of delayed payments, Khera stated, "We have also started monitoring any payments that are delayed to MSEs beyond the stipulated period of 45 days so that MSMEs do not suffer on that account." This proactive approach aims to ensure that MSEs receive timely payments, which is vital for their sustainability.

Impact of Global Crises

Khera highlighted that supply chain disruptions have become increasingly common for MSEs, particularly due to the COVID-19 pandemic and the ongoing West Asia crisis. Despite these challenges, Indian enterprises have shown remarkable resilience, adapting to the evolving landscape.

Conclusion

The Indian government's substantial credit guarantees and active monitoring of delayed payments reflect its commitment to supporting micro and small enterprises. As these businesses continue to navigate challenges, such initiatives are crucial for fostering a robust environment.