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20/05/2022 11:27am

Tamil Nadu to roll out credit guarantee scheme for MSMEs for collateral free loans

image Tamil Nadu to roll out credit guarantee scheme for MSMEs for collateral free loans

Chennai, May 20 (KNN) Tamil Nadu’s Micro, Small and Medium Enterprises (MSME) department has said that the Rs 100 crore Tamil Nadu Credit Guarantee Scheme (TNCGS) will be rolled out by August-end or September, as per media reports. 

The scheme was announced during the state budget for the financial 2022-23.

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Issues related to credit availability will be alleviated through the credit guarantee scheme which as it will help MSMEs to get loans up to a certain limit without any surety or security.

The scheme offers guarantee on loans offered by financial institutions, thereby encouraging them to extend credit. 

In the event of the borrower being unable to repay, the CGS reimburses the loan amount. It is an insurance not only to the lender but to the borrower also.  (KNN Bureau)

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