SRINAGAR: Micro, small and medium enterprises (MSMEs) in Jammu and Kashmir received credit guarantees worth Rs 2,501 crore during the current financial year under the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), the Union government informed the Lok Sabha on Thursday.
In a written reply to an unstarred question, Minister of State for Micro, Small and Medium Enterprises Shobha Karandlaje said that 32,165 credit guarantees were approved for Jammu and Kashmir under the CGTMSE during 2025-26 up to December 31, 2025. The data was placed before Parliament as part of a nationwide update on financial support and credit facilitation for MSMEs.
The ministry said the CGTMSE provides collateral-free credit to micro and small enterprises by offering guarantee cover to lending institutions. Across the country, a total of 19.40 lakh guarantees amounting to Rs 3.03 lakh crore were approved during the period under review.
The government also outlined broader steps aimed at improving access to finance for MSMEs, including regulatory directions issued by the Reserve Bank of India mandating banks not to insist on collateral for loans up to Rs 10 lakh extended to micro and small enterprises. These measures are intended to ease credit constraints faced by small businesses, particularly in regions with limited access to formal finance.
In addition, the ministry said it continues to conduct awareness campaigns through its field offices in coordination with state and Union Territory governments, industry departments and other stakeholders to increase participation in government credit and support schemes.
The information was provided in response to a Lok Sabha question on financial support and credit facilitation for MSMEs, underscoring the scale of institutional credit support being extended to enterprises in Jammu and Kashmir as part of the Centre’s wider MSME development programme.
