Credit Guarantee Fund Trust for Micro and Small Enterprises

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) a joint initiate of Gol (through Ministry of MSME) and Small Industries Development Bank of India (SIDBI) is setup to catalyse flow of institutional credit to Micro & Small Enterprises (MSEs). Over the past 17 years, CGTMSE has been instrumental in providing guarantee cover to collateral/third party guarantee free credit facilities extended by eligible member Lending Institutions [MLIs] to Micro and Small Enterprises (MSEs) and thus is promoting collateral-free credit and bringing a paradigm shift from collateral based lending to project based lending.

Credit Guarantee Scheme is considered as a vehicle of inclusive growth by reaching out to the disadvantaged sections of society particularly women and those belonging to the weaker segments.

CGTMSE has crossed an important milestone in FY 2018 by recording cumulative guarantee approvals of over 30 lakhs with an aggregate loan amount of over Rs.1.46 lakh crore. For further details, you may please access. www.cgtmse.inCGTMSE has always been responsive and pro-active organization to enhance the ease of access to credit by MSEs. CGTMSE has recently brought about following major policy changes:

The aforesaid changes undertaken by the Trust would greatly enhance the effectiveness of the credit guarantee scheme leading to enhanced flow of institutional credit to the MSE sector.

I am sure this information will be of great interest to our Micro and Small Enterprises members. Interested members are requested to approach the bank/financial institution of their choice to avail the benefits of this revised / refreshed Credit Guarantee Scheme for their bankable and viable proposals.

4 Charging of guarantee fee on outstanding loan amount instead of current practice of charging fee on sanctioned amount to incentivize the disciplined borrowers;

4 Inclusive of Retail Trade as an eligible activity;4 Allowing partial collateral security under Credit Guarantee Scheme of CGTMSE;4 Enhancing IT infrastructure of the Trust to improve operational efficiencies and reduce the turnaround time

for guarantee coverage & claim settlement, accordingly, availing guarantee and claim settlement process has been digitized to enable hassle free experience for borrowers and MLIs.

CGTMSE

SanjaykapoorSecretary General