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31/03/2023 04:46pm

Revamped CGTMSE to come into effect from 1st April 2023

image Revamped CGTMSE to come into effect from 1st April 2023

New Delhi, Mar 31 (KNN) The revamping of Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE) announced by Union Finance Minister Nirmala Sitharaman in the Union Budget 2023-24 will come into effect from 1 April, 2023.

It will be applicable with an infusion of Rs 9,000 crore to the corpus to enable additional collateral-free guaranteed credit of Rs 2 lakh crore and the reduction in the cost of the credit by about 1 per cent.


The corpus of CGTMSE has been infused with a sum of Rs 8,000 crore on Thursday.

CGTMSE has issued guidelines regarding reduction of annual guarantee fee for loans upto Rs 1 crore from a peak rate of 2 per cent per annum to as low as 0.37 per cent per annum.

This will reduce the overall cost of credit to the Micro & Small Enterprises to a great extent.

The limit on ceiling for guarantees has been enhanced from Rs 2 crore to Rs 5 crore.

For settlement of claims in respect of guarantees for loan outstanding upto Rs 10 lakh, initiation of legal proceedings will no longer be required.

CGTMSE created a new landmark by touching the milestone figure of approving guarantees worth Rs 1 lakh crore during FY 2022 - 23.  (KNN Bureau)


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