The economic and social significance of Micro and Small Enterprises (MSEs) to the country is a well acknowledged fact. However, unleashing the true potential of the sector is only possible by enabling commensurate credit flow.
In a country where lack of collaterals is a challenge for MSEs, CGTMSE as the facilitator of collateral free credit, unshackles the potential of MSEs and lends wings to their dreams. CGTMSE stays committed to conversion of bankable business ideas of millions of youth, enabling growth of fledglings to enterprises, catalysing financial inclusion and fostering economic growth.
I report, with pleasure and pride that FY 2019 has been a momentous year in the history of CGTMSE in terms of operational performance and outreach to the MSE sector.
Highest ever recorded guarantee approvals since inceptionRead More
CGTMSE introduced the following major policy changes which made the Credit Guarantee Scheme (CGS) more attractive to MSEs and MLIs that would enable the increased credit flow to MSE Sector:
Increase in the extent of guarantee coverage
Charging of fee on outstanding loan instead of sanction amount
Inclusion of MSE retail trade as eligible activity
Allowing partial collateral security
Introduction of payout caps
Operations under CGS A total of 4,35,520 guarantees were approved for an amount of ₹ 30,168 crore as compared to approval of 2,63,195 guarantees for ₹ 19,066 crore in the previous year.
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