CGTMSE - ACHIEVEMENT OF TARGET COVERAGE OF 50,000 Proposals In FY 2009
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was established by Govt. of India and SIDBI in August 2000 to facilitate collateral free credit to the Entrepreneurs in the Micro and Small Enterprises (MSEs) Sector. During the financial year 2008-09, CGTMSE has shown commendable growth in its performance in terms of number and amount of guarantee covers issued under its Credit Guarantee Scheme on all India basis. Against the set target of covering 50,000 proposals for Rs.1,500 crore under its Credit Guarantee Scheme (CGS) during FY 2009, CGTMSE was able to surpass the target. CGTMSE issued the 50,000th Credit Guarantee Approval Certificate to Bank of India in respect of their collateral-free loan of Rs.1 crore to M/s. Solus Security Systems Pvt. Ltd., a constituent of Bank of India's Goregaon (West) Branch, Mumbai at a function organized at Bank of India, Head Office, Mumbai. Shri R.M. Malla, Chairman, CGTMSE and CMD, SIDBI handed over the Certificate to Shri T.S. Narayanasami, CMD, Bank of India and Chairman, Indian Banks' Association (IBA) in the presence of senior officials of Bank of India and CGTMSE. Shri Narayanasami highlighted the importance of Credit Guarantee Scheme and the initiatives taken by Bank of India to promote the Scheme.
Addressing the function, Shri Malla appreciated the lead role played by Bank of India in helping CGTMSE to reach the target of 50,000 proposals in FY 2009. Shri Malla emphasized that CGTMSE would take all necessary steps to strengthen its partnership with Banks and other MLIs for increasing the coverage under the Scheme in the days ahead.
Shri O.S. Vinod, CEO, CGTMSE indicated that cumulatively, as at March 30, 2009, 146326 proposals for Rs.4725 crore had been approved by CGTMSE since inception and the Trust was hopeful of rapidly scaling up the coverage further during FY 2010. An assessment of the impact of the coverage under CGS indicates that there is an estimated employment generation for over 18.65 lakh persons, expected turnover of Rs.35,820 crore and estimated exports of Rs.1113 crore. Around 84% of these guarantees were to small borrowers with average loan size of below Rs.5 lakh. CGTMSE as on date has 81 Member Lending Institutions comprising of all PSU Banks, major Private Sector Banks, Regional Rural Banks, NEDFi and SIDBI. The present Corpus of the Fund stood at Rs.1736 crore as against the target corpus of Rs.2,500 crore. The operations of the Trust are conducted online through internet based B2B portal, resulting in transparency and efficiency of operations.
Date : March 30, 2009