News
CGTMSE Scheme: Increasing Credit Access for MSMEs with a Guarantee of 2 Lakh Cr
Published
1 year agoon
In the FY 2023-24 Union Budget, the CGTMSE Scheme received an additional corpus support of 9,000 crore to revamp the scheme, which will provide a guarantee for an additional 2 lakh crore to MSME
Why is the scheme making headlines?
The restructured CGTMSE Scheme was recently launched in Mumbai by Shri Narayan Rane, Union Minister for MSME. The FY 2023–24 Union Budget included an additional 9,000 crores in corpus support for the CGTMSE Scheme, which will be updated and offer a guarantee for an additional 2 lakh crore to Micro & Small Enterprises.
Ministry of Micro, Small, and Medium Enterprises (MSME)
Year of Inception: 2000
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is the implementing body.
Objectives include: – The Credit Guarantee Scheme (CGS) was established with the primary goal of improving the credit delivery system and facilitating the flow of credit to the Micro and Small Enterprises (MSE) sector. The scheme aimed to provide access to finance for those who were unserved, underserved, or underprivileged, as well as to make traditional lenders’ funds available to the next generation of entrepreneurs.
Read Also:- 2022, Pakistan will be the largest recipient of ADB-funded programmes.
Beneficiaries include the Micro, Small, and Medium Enterprise (MSME) industry.
eligibility requirements:
Without requiring any collateral security or third-party guarantees, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) offers guarantee coverage to credit facilities sanctioned up to Rs. 200 lakhs to all new and existing micro and small enterprises, both in the manufacturing and services sectors, with the exception of educational and training institutions.
Recently, CGTMSE unveiled a modified plan that consists of a Hybrid Security product. This enables the credit guarantee scheme (CGS) of CGTMSE Scheme to provide coverage for loans approved to MSE units with partial collateral coverage. A portion of the loan that is not secured by collateral may, under this scheme, be covered under CGTMSE up to a maximum of Rs 2.00 Cr.
With a maximum exposure limit of Rs 1.00 Cr, CGTMSE covers retail trade activities.
Exclusion criteria: Agricultural loans and Self Help Groups (SHGs) are not eligible for coverage under the CGTMSE.
Charges are used to fund the project. Loans have an annual guarantee fee.
Allocation of funds: Rs 9,000 crore.
You may like
-
North Korea asserts that the test of a multiple-warhead missile was successful
-
The Student Wing of Congress storms the Exam Body NTA office and locks it from within
-
“During President Murmu’s address to Parliament, PM Modi was shown 73 times, and LoP Rahul Gandhi was shown six times”: Congress
-
NASA contracts Elon Musk’s SpaceX to deorbit the International Space Station in 2023.
-
A Caution For The CBI In The Delhi Court’s Arvind Kejriwal Custody Order
-
Bar Council of India requests that bar associations abstain from demonstrating in opposition to new criminal laws