Centre Highlights Credit Support Schemes Benefiting UP MSMEs And Artisans

New Delhi, Aug 11 (KNN) The government has undertaken several initiatives to improve credit flow to MSMEs and traditional artisans across the country, including handicraft businesses in western Uttar Pradesh, Finance Minister Nirmala Sitharaman said in the Lok Sabha.

In a written reply to a starred question on special credit support for MSMEs, the minister listed various schemes providing collateral-free credit, credit guarantees and financial assistance to enterprises and artisans.

Under the Pradhan Mantri Mudra Yojana (PMMY), which currently provides collateral-free loans of up to Rs 20 lakh to eligible micro enterprises, 6.02 crore loans worth Rs 4.13 lakh crore have been extended in Uttar Pradesh since the scheme's inception. 

Women beneficiaries accounted for Rs 1.48 lakh crore, or 36 percent, of the disbursements as of June 26, 2026.

PM Vishwakarma Supports Traditional Artisans

The PM Vishwakarma Scheme, launched in 2023, provides collateral-free enterprise development loans of up to Rs 3 lakh in two tranches at a concessional interest rate of 5 percent, along with government interest subvention.

In Uttar Pradesh, Rs 129 crore has been disbursed to 15,304 beneficiaries under the scheme.

The Ministry of Textiles is also implementing the National Handicrafts Development Programme (NHDP) and Comprehensive Handicrafts Cluster Development Scheme (CHCDS) to support artisans through skill development, marketing, infrastructure, technology, digitisation and access to domestic and international markets.

Under NHDP, Rs 29.12 crore was sanctioned during 2025-26, benefiting 10,616 artisans in Uttar Pradesh. Under CHCDS, which ended on March 31, 2026, Rs 6.25 crore was sanctioned during the year, benefiting 1,510 artisans.

Credit Guarantee Coverage Strengthens MSME Lending

The Credit Guarantee Scheme for Micro and Small Enterprises (CGS) provides guarantee coverage for credit facilities extended to MSEs without collateral security or third-party guarantees.

As of July 31, 2026, more than 21 lakh guarantees worth Rs 1.58 lakh crore had been issued by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in Uttar Pradesh.

ECLGS 5.0 Extends Additional Credit To MSMEs

The government also launched Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 in May 2026, under which eligible MSMEs can access additional credit of up to 20 percent of their peak fund-based working capital outstanding in the fourth quarter of FY2025-26.

In Uttar Pradesh, Rs 13,139 crore had been disbursed to 55,824 MSMEs under the scheme as of August 5, 2026.

Export Credit Scheme Supports MSME Exporters

The Credit Guarantee Scheme for Exporters (CGSE), launched in December 2025, provided 100 percent credit guarantee coverage for additional credit facilities of up to Rs 20,000 crore to eligible exporters, including MSMEs. The scheme ended on March 31, 2026.

In Uttar Pradesh, Rs 744.06 crore was disbursed to 364 exporters under the scheme.

(KNN Bureau)