New Delhi, Apr 27 (KNN) In a bid to facilitate information among the Micro, Small and Medium Enterprises (MSMEs) with regard to the new policy changes in the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme (CGTMSE), the government has issues notification to MSMEs and industry associations.

“CGTMSE has always been responsive and pro-active organisation to enhance the ease of access to credit by MSEs. In a latest revision, CGTMSE has introduced major policy changes”, the notification reads.

This includes charging of guarantee fee on outstanding loan amount instead of current practice of charging fee on sanctioned amount to incentivise disciplined borrowers.

Inclusion of Retail Trade as an eligible activity under the scheme.

Allowing partial collateral security under Credit Guarantee scheme of CGTMSE.

Enhancing IT infra of the trust to improve operation efficiencies and reduce the turnaround time for guarantee coverage claim and settlement, accordingly availing guarantees and claim settlement process has been digitised.

This has been done to to enable a hassle free experience for borrowers and MLIs, the notification said.

The CGTMSE authority further urged the MSMEs to approach the banks and financial institutions to avail the benefit of the revised and refreshed scheme for the bankable and viable proposals. (KNN/DA)