MSME Credit Guarantees '' Delayed Payments Under Govt Lens

New Delhi, Jun 30 (PTI) The Centre has provided credit guarantees of Rs 13 lakh crore to micro and small enterprises over the last few years, a top official said on Tuesday, asserting that the government is monitoring delayed payments to MSMEs as it remains a "sore point" for the sector.

Emergency Credit Line Guarantee Scheme (ECLGS) was launched in May 2020 to support eligible MSMEs and enterprises to meet their operational liabilities and restart businesses in the context of the disruption caused by the COVID-19 pandemic.

"This has enabled the credit inflow into the MSME sector very significantly. About 10-11 years back in 2014, the credit inflow to the MSME sector was to the tune of Rs 10 lakh crore. Today it is Rs 37 lakh crore. The increase has been (about) 300 per cent. Plus, besides debt financing, equity financing is equally important," MSME Secretary Bharat Khera said addressing a CII event.


ECLGS 5.0 was approved by Union Cabinet on May 5, 2026 to support MSMEs during the West Asia crisis.

As on June 9, 2026, the total number of guarantees issued under ECLGS reached 1.06 lakh with total amount at Rs 48,484.26 crore, demonstrating the extensive scale of credit protection being extended to lenders.

Observing that delay in payments has been a "sore point", particularly for the MSME sector, Khera said, "We have also started monitoring any payments that are delayed to MSMEs beyond the stipulated period of 45 days so that MSMEs do not suffer on that account also".

Observing that supply chain disruptions have become very common for MSMEs starting from Covid pandemic to the West Asia crisis, the MSME Secretary stressed that Indian enterprises have demonstrated remarkable resilience during the challenging periods.