CGTMSE to partner with NI-MSME, Hyderabad to set up Financial Inclusion Centre

ENA MSME 2023-04-28 16:28:32 Mumbai, Apr 28 (KNN) It was announced on Thursday that CGTMSE will collaborate with National Institute for Micro, Small and Medium Enterprises (ni-msme), Hyderabad for setting up a Centre of Financial Inclusion for MSME. This announcement was made when Union Minister for MSME Narayan Rane launched the revamped CGTMSE Scheme in Mumbai. <a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a> CGTMSE has been provided with an additional corpus support of Rs 9,000 crore in the Union Budget for FY 2023-24 to revamp its Scheme to provide guarantee for additional Rs 2 lakh crore to Micro & Small Enterprises. Accordingly, the major revamp measures were launched and disseminated to the lending institutions. The modifications included reduction in guarantee fees for loans upto Rs 1 crore by 50 per cent bringing the minimum guarantee fee to the level of 0.37 per cent pa only. Another major change announced was raising of ceiling for guarantee from Rs 2 crore to Rs 5 crore and enhancing the threshold limit for claim settlement without initiation of legal action to Rs 10 lakh. While launching the revamp measures Narayan Rane impressed upon the lending institutions to make best use of liberalisation to ensure enhanced lending to the MSE Segment without insisting for collateral. He expressed confidence that such measures would enthuse bankers to reduce their dependence on availability of collateral security which continues to be a problem for MSEs, especially the first generation entrepreneurs. Speaking on the occasion, Secretary, B B Swain apprised that CGTMSE was also collaborating with various State Governments for enhanced guarantee coverage for MSEs in respective States. He exuded confidence that all policy level modifications, along with other initiatives being taken by CGTMSE, would result in greater utilisation of guarantee mechanism. S Ramann, Chairman and Managing Director, SIDBI (who is also the Chairman of CGTMSE) said that CGTMSE has been taking various initiatives which aims at boosting credit flow to MSEs by making the guarantee Scheme attractive for both MSEs as well as for the lenders. He also indicated that CGTMSE would come out with more schemes and assured the lenders that it would always be nimble footed in responding to their requirements. Banks which had best utilised the guarantee Scheme were felicitated by the Union Minister. Senior executives of banks and NBFCs appreciated the changes being brought in the Scheme and expressed confidence that these measures will go a long way in facilitating collateral free lending to MSEs in the country and thus to create employment in a big way. (KNN Bureau) 33148 https://knnindia.co.in/news/newsdetails/msme/cgtmse-to-partner-with-ni-msme-hyderabad-to-set-up-financial-inclusion-centre 2023-04-28 16:28:32 knnindia.co.in CGTMSE to partner with NI-MSME, Hyderabad to set up Financial Inclusion Centre