Goa Introduces Credit Guarantee Scheme To Boost Collateral-Free Loans For MSEs

Panaji, Jan 15 (KNN) The Goa government has officially launched the Goa Credit Guarantee Scheme (GCGS), also known as Mukhyamantri Saral Udyog Sahayya Yojana (MSUSY), aligning with the existing credit guarantee scheme CGTMSE by the central government.

Introduced on January 11, 2024, this five-year initiative aims to facilitate collateral-free loans for Micro and Small Enterprises (MSEs) in the state, mitigating risks for lenders engaging with eligible enterprises.

Last year in July, the Goa government entered into a Memorandum of Understanding (MoU) with CGTMSE to administer the GCGS.

Under this scheme, MSEs in Goa with Udyam registration can benefit from a guarantee coverage of 75-85 per cent from CGTMSE and an additional 10-20 per cent from the Goa government, resulting in an overall guarantee coverage of up to 95 per cent for the loans extended.

“The Government of Goa shall pledge the initial corpus of Rs 10 crore with CGTMSE Trust for the purpose of implementation of GCGS-MSUSY scheme in the state of Goa,” the notification read.

Further, the government retains the option to extend the scheme's validity or infuse additional funds for its continuation, as per the notification.

All lending members under CGTMSE, including scheduled commercial banks, regional rural banks, small finance banks, and co-operative banks, are eligible to participate in lending to MSEs under this comprehensive scheme.

Eligibility criteria encompass Udyam-registered MSEs, with a specific focus on women entrepreneurs, SC-ST entrepreneurs-led units, MSEs situated in aspiration districts, ZED-certified MSEs, units managed by persons with disabilities (PWD), and MSEs promoted by agniveers.

In a parallel development, the Central Government's CGTMSE recently achieved a milestone by reaching the Rs 1 lakh crore loan guarantee mark within the first seven months (April-October) of the current fiscal year.

This surpasses the scheme's total guarantees approved in the entire fiscal year 2022-23, amounting to Rs 1.04 lakh crore. The number of guarantees approved in the last fiscal stood at 11.65 lakh.

Cumulatively, the CGTMSE scheme has approved credit guarantees amounting to Rs 5 lakh crore, benefiting 76 lakh MSEs, as reported by the MSME Ministry in October of the previous year.

Established in July 2000 with an initial outlay of Rs 2,500 crore, the CGTMSE's financial commitment was later increased to Rs 7,500 crore, with an additional Rs 5,000 crore contributed by the Government of India.

(KNN Bureau)