Nearly 4 lakh MSME loans sanctioned in J&K under collateral-free credit schemes

Srinagar, July 31: Jammu and Kashmir has seen credit facilitation for Micro, Small, and Medium Enterprises in recent years, with a total of 399,396 loan accounts sanctioned under the Pradhan Mantri MUDRA Yojana and over 1.51 lakh guarantees approved under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in the last three years.The Credit Guarantee Scheme, which enables collateral-free loans to eligible micro and small enterprises, has been actively implemented in the Union Territory. According to official data presented in Parliament, J&K recorded 51,431 credit guarantees in 2022-23, followed by 53,295 in 2023-24 and 47,201 guarantees in 2024-25, reflecting sustained support for entrepreneurship and business continuity.Similarly, under the PMMY which provides micro-loans of up to Rs 10 lakh to non-corporate, non-farm small businesses, J&K saw 330,963 loan accounts in 2022-23, 366,142 in 2023-24, and 399,396 in 2024-25, indicating a consistent upward trend in credit access for small entrepreneurs and self-employed individuals.To further strengthen MSME financing, the Ministry of MSME recently implemented key reforms which include reducing the Annual Guarantee Fee by 50%, and enhancing the ceiling for guarantee coverage from Rs 5 crore to Rs 10 crore. For informal micro enterprises, a special provision introduced in 2024 offers up to Rs 20 lakh in credit without primary security and 85% guarantee coverage at a concessional AGF.The government has also launched awareness drives in collaboration with States and UTs, industry departments, and stakeholders through physical workshops, print, and digital media to increase participation from entrepreneurs in rural and semi-urban areas.To tackle delayed payments from large corporates and departments to MSMEs, a major challenge affecting liquidity, the government has operationalized the SAMADHAAN Portal, created Micro & Small Enterprises Facilitation Councils, and recently launched an Online Dispute Resolution portal for end-to-end digital resolution of payment issues.A new digital credit assessment model has also been introduced for MSMEs, using automated systems with PAN authentication, GST and bank data analysis, and fraud checks through APIs. The initiative is part of a broader push to boost digital adoption and formal financing in the sector.