Thursday, June 20, 2024

Credit guarantees worth Rs4.06 trillion approved for small businesses

NEW DELHI : Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has provided guarantees worth 4.06 trillion on loans extended to micro and small enterprises.

The trust provides credit guarantee to its member lending institutions (MLIs) for the loans extended by them to micro and small Enterprises without any collateral security or third party guarantee. 

“From inception in 2000 till 28th February 2023, 69,04,649 number of guarantees amounting to Rs. 4,06,310 crore have been approved under Credit Guarantee Scheme for Micro and Small Enterprises,” said a written response from the minister of state for micro, small and medium enterprises Bhanu Pratap Singh Verma in Rajya Sabha

As on 28 February, out of the total number and amount of guarantees approved under Credit Guarantee Scheme for Micro and Small Enterprises, 21% by number and 14% by amount is constituted by women-owned micro and small enterprises.

Out of the total number and amount of guarantees approved under Credit Guarantee Scheme for Micro and Small Enterprises, 6% by number and 3% by amount is constituted by SC/ST-owned MSEs.

Among the states, the highest guarantees were approved in Maharashtra, worth 48,262 crore, followed by 39,964 crore in Uttar Pradesh and 32,758 crore in Tamil Nadu.

The objective of the trust is availability of bank credit without the hassles of collaterals or third party guarantees for setting up micro and small enterprise (MSE).

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