Udyam and CGTMSE Collaborate to Expand Access to Collateral-Free Loans for MSMEs

New Delhi, July 11 (KNN) The Ministry of MSME has announced a collaboration between Udyam and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to exchange data of registered enterprises on Udyam with the government's collateral-free loan scheme for micro and small enterprises (MSEs).

MSME Minister Narayan Rane on his Twitter handle shared, “The Ministry of MSME (Udyam) and CGTMSE Official join forces through an MoU, enabling seamless sharing of Udyam Registration data with CGTMSE. This collaboration aims to provide greater coverage and benefits to our vibrant MSME sector.”

This collaboration will make it easier for MSMEs to get loans by providing lenders with access to real-time data on the financial health of MSEs. This will help lenders to make more informed lending decisions and reduce the risk of lending to MSEs.

The data exchange will be done through API (Application Programming Interface) integration, which will allow both platforms to share data with each other seamlessly. This will ensure that the data is accurate and up-to-date, and that it is available to lenders in a format that they can easily use.

This collaboration is sought to enable more MSMEs to avail the benefits under the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE).

Udyam is the government’s online registration and certification platform for MSMEs. Currently, Udyam has about 2.04 crore enterprises registered on it, out of which 1.97 crore are micro-enterprises, 5.56 lakh are small, and 52,568 enterprises are medium-sized. The government has made it mandatory for MSMEs to register on the Udyam platform in order to avail the benefits under various schemes dedicated to MSMEs. (KNN Bureau)