Credit Guarantee Fund Trust for Micro and Small Enterprises

• 01 May 2023

On April 27, 2023, the Union Minister for Micro, Small, and Medium Enterprise (MSME), launched the revamped Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme in Mumbai.

• CGTMSE is collaborating with various State Governments for enhanced guarantee coverage for MSEs in respective States.
• Modifications included reducing the guarantee fees for loans up to ₹1 crore by 50%, raising the ceiling for guarantee from ₹2 crore to ₹5 crore and enhancing the threshold limit for claim settlement without initiation of legal action to ₹10 lakh.
• CGTMSE has been provided with an additional corpus support of ₹9,000 crore in the Union Budget for FY 2023-24 to revamp its Scheme to provide guarantee for additional ₹2 lakh crore to Micro & Small Enterprises.
• THE Minister for MSME urged lending institutions to make best use of liberalisation to ensure enhanced lending to the MSE Segment without insisting for collateral.
• CGTMSE will collaborate with National Institute for Micro, Small and Medium Enterprises (ni-msme), Hyderabad, for setting up a Centre of Financial Inclusion for MSME.