CGTMSE Guarantees Cross Rs 1.50 Lakh Crore Mark In Collateral-Free Loans To MSEs

New Delhi, Feb 3 (KNN) The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), a government initiative aimed at providing guarantees to lenders for collateral-free loans to micro and small enterprises (MSEs), has achieved a significant milestone in the current financial year.

According to the Ministry of Micro, Small, and Medium Enterprises (MSME), the guaranteed amount has surged to over Rs 1.50 lakh crore, a substantial 50 per cent increase from the Rs 1.04 lakh crore recorded in FY23.

This remarkable achievement is attributed to strategic initiatives implemented by the Small Industries Development Bank of India (SIDBI), the Ministry of MSME, and CGTMSE. 

These efforts focus on facilitating collateral-free lending to MSEs, supporting their growth and sustainability.

CGTMSE, launched in 2000, serves as a credit guarantee support system for lenders. 

In December 2022, the scheme underwent revisions to enhance credit accessibility for MSMEs. 

The widespread adoption of the guarantee mechanism by lenders is credited to CGTMSE's proactive measures. 

These include a reduction in guarantee fees, an increase in the eligibility limit of loans for guarantee, relaxation of pre-conditions for claim settlement, and the end-to-end digitisation of operations. 

These initiatives collectively contribute to an "ease of doing business" for lenders, streamlining the loan process and encouraging more financial institutions to participate.

The MSME Ministry commended the collaborative efforts of SIDBI, the Ministry, and CGTMSE, emphasising the positive impact on micro and small enterprises. 

This milestone highlights the success of the government's commitment to fostering financial support and growth opportunities for MSEs, essential contributors to India's economic landscape. 

As CGTMSE continues to evolve and adapt, it reinforces the government's dedication to promoting the vitality and resilience of the micro and small business sector.

(KNN Bureau)