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PRESS RELEASE

Portfolio Credit Guarantee Scheme For MSEs

 

(PCGS) -

CGTMSE Inks Historic Pact With SBI

 

CGTMSE has signed an MoU with SBI today for launching a new credit guarantee product viz., Portfolio Credit Guarantee Scheme for Micro and Small Enterprises (PCGS) under which the entire portfolio of collateral-free credit upto Rs.1 crore extended by SBI to Micro and Small Enterprises (MSEs) would be guaranteed by CGTMSE.  The MoU is a path-breaking initiative taken by SBI and CGTMSE which would exponentially increase the number of MSE unit getting collateral-free credit from the bank and ensuring that no eligible proposal is deprived of guarantee cover.

The MoU was signed by Shri O S Vinod, CEO, CGTMSE and Shri B S Bhasin, CGM, SBI in the presence of Shri O P Bhatt, CMD, SBI and Shri R M Malla, Chairman, CGTMSE and CMD, SIDBI and other senior executives of SBI at a function in SBI, Central Office, Mumbai.

CGTMSE was set up by Government of India and SIDBI in August 2000 for extending guarantee cover to collateral-free loans to MSE units upto Rs.1 crore per borrower.  As on June 23, 2009 1,70,000 proposals for Rs.5,700 crore have been guaranteed by CGTMSE.  The new initiative will help MSEs to improve its creditworthiness with the banks.

Date : June 23, 2009

Place: Mumbai