Lucknow, Dec 21 (KNN) Uttar Pradesh (UP) has given loans to 5.12 lakh Micro, Small and Medium Enterprises (MSME) units worth Rs 22, 800 crores to expand their businesses.

“Chief Minister Yogi Adityanath has distributed loans to MSMEs several times since coming to power through loan fairs, and issued instructions to banks that businessmen should not face problems in getting loans,'' the state government said on Sunday.

''As a result, MSME units in Uttar Pradesh have reached the first position in taking loans in the country under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE),'' it added.

According to the UP government, the top 11 states that have provided the maximum amount of loans to the industries are Uttar Pradesh, Tamil Nadu, Maharashtra, Karnataka, Kerala, West Bengal, Gujarat, Madhya Pradesh, Odisha, Andhra Pradesh, and Bihar.

To operationalise the scheme, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). CGTMSE has introduced a new "Hybrid Security" product allowing guarantee cover for the portion of the credit facility not covered by collateral security.