Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) celebrates Diwali with coverage of over 2 lakh proposals in FY 2010
Mumbai October 15, 2009 - Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), set up by Govt. of India and SIDBI in August 2000, has achieved cumulative coverage of over 2 lakh proposals in FY2010 as at September 30, 2009. During the current financial year, 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.
"CGTMSE provides a new window of hope to the entrepreneurs in setting up their own enterprises, or for diversification, expansion, modification by facilitating extension of collateral free credit through the institutional mechanism. It enables MSE entrepreneurs to avail credit for capacity building, skill development, marketing support and improvement of technology besides meeting working capital and other requirement. As at September 30, 2009, 203739 proposals for Rs.7233 crore had been approved by CGTMSE since inception and the Trust is hopeful of rapidly scaling up the coverage further during FY 2010." opined by Mr.O.S Vinod, CEO, CGTMSE.
The Credit Guarantee Scheme (CGS) is operated through a network of banks and Financial Institutions called Member Lending Institutions (MLIs).As at September 30 2009, 97 banks and Financial Institutions are registered with the Trust as MLIs comprising of 27 PSU Banks, 16 Private Sector Banks, 2 Foreign Banks, 47 Regional Rural Banks and 5 other lending institutions (NSIC, NEDFi, SIDBI, TIIC and DFC).
About CGTMSE :
To address the problem of MSEs in accessing institutional credit in the absence of collateral security and / or third party guarantee, which was hampering growth of the sector, the Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in August 2000. The operations of CGTMSE are conducted on B2B portal through internet. The website of CGTMSE has been hosted at www.cgtmse.in.