Narayan Rane Unveils Scheme For Informal Micro Enterprises; Collateral-Free Loans Up To Rs 20 Lakh

New Delhi, Feb 16 (KNN) MSME Minister Narayan Rane unveiled the ‘Special Provision for Informal Micro Enterprises under Credit Guarantee Scheme,’ to facilitate access to collateral-free loans of up to Rs 20 lakh through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Launched on Wednesday, this scheme is designed specifically for Informal Micro Enterprises (IMEs), which operate outside the purview of the Goods and Services Tax (GST) regulations.

This scheme aims to provide much-needed credit support to micro and nano enterprises, with the overarching goal of mitigating perceived credit risks, as highlighted by the MSME Ministry in a recent statement.

Under this initiative, IMEs can now seek financial assistance from lenders without the burden of collateral.

According to a circular issued by CGTMSE to all its Member Lending Institutions (MLIs) on February 14, lenders will receive up to 85 per cent guarantee coverage for unsecured loans of up to Rs 20 lakh extended to IMEs registered on the Udyam portal, offering significant assurance to financial institutions participating in the scheme.

(KNN Bureau)