Driving MSE Growth –Credit Guarantees
MSME Credit – where it stands
The commercial credit exposure at ₹ 4.8 lakh crore and ₹ 11.1 lakh crore in respect of Micro and SME segments, account for around 24.9% of the commercial credit outstanding as at the end of March 2019. The said share of Micro and SME sectors in commercial credit has a substantial scope to upscale, given the contribution of 29% to GDP and 49% to exports.
MSE Credit – where it can be
The addressable debt demand from Micro and Small segments stands at around ₹ 11.9 lakh crore and ₹ 21.7 lakh crore respectively, evidencing the well-acknowledged demand-supply gap scenario in the sector. Addressing the credit gap would enable the sector to substantially enhance their contribution to the economy.
MSE Credit – Credit Guarantee Support
Given the collateral constraints which the MSE sector is known to face, Credit Guarantee has emerged a time tested tool across the globe to drive credit flow to the sector. Addressing the credit gap would to a large extent be a factor of enhanced credit guarantee support. The impact of enhancements to the credit guarantee products with changing needs of the sector is evident from the upswing in the credit guarantee flow shown by CGTMSE in FY 2019. The Trust would continue to strengthen its role in boosting credit flow to the MSE sector and thereby play a significant role in the journey of the Indian economy.
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