CGTMSE - Facilitating institutional credit flow to MSE sector

Credit Guarantee Scheme has over the years emerged as a successful tool in facilitating MSEs access to formal credit sources. The Scheme attempts to reorient the lenders perspective from collateral based lending to project liability. CGTMSE has been able to instil confidence and encourage MLIs to enhance credit flow to MSEs, backed by the comfort of guarantee cover. Considering that the Scheme is exclusively focussed on the MSE sector which is the backbone of the Indian economy, the positive externalities in terms of contribution to GDP and employment generation is immense.

CGTMSE - Framework

Salient Features