A steady expansion in institutional credit access is unfolding in Maharashtra, with a sharp increase recorded in credit guarantees approved for Micro and Small Enterprises, including rural units, under the Credit Guarantee Scheme over the last 3 financial years.
Data presented in Parliament show that the number of credit guarantees approved in the state rose from 66,055 in 2022–23 to 1,29,892 in 2023–24, and further to 2,38,128 in 2024–25.
This represents a 3.6-fold increase within 2 years, highlighting rapid growth in the availability of collateral-free credit for small businesses.
The value of guarantees approved under the scheme has grown at a similar pace. Credit guarantees worth ₹11,926 crore were sanctioned in 2022–23. This amount increased to ₹23,359 crore in 2023–24 and reached ₹39,989 crore in 2024–25. In absolute terms, the approved guarantee value has more than tripled during this period.
The data, which include rural enterprises across Maharashtra, point to rising dependence on the CGTMSE-backed lending framework among micro and small businesses. The scheme offers credit guarantees for loans extended to MSEs, with a maximum guarantee coverage limit of ₹10 crore.
The central government has supported this credit expansion with additional initiatives to strengthen MSME financing. The Self-Reliant India Fund has been created to provide ₹50,000 crore as equity support to MSMEs. The Prime Minister’s Employment Generation Programme offers margin money subsidies of up to 35% for new micro enterprises.
Further support is available through the PM Vishwakarma Scheme, which provides loans of up to ₹3 lakh with interest subvention benefits. The Trade Receivables Discounting System also enables digital financing of MSME receivables.
The ministry has stated that outreach programmes are being conducted with District Industries Centres, banks, and other stakeholders to speed up credit flow. The sharp rise in guarantee approvals reflects increasing formalisation of small businesses and deeper credit penetration in Maharashtra’s MSME sector, especially among first-generation and rural entrepreneurs seeking collateral-free funding.
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