MSMEs’ collateral free loan scheme hits Rs 1 lakh cr mark in Apr-Oct FY24

India’s collateral-free loan scheme for micro and small enterprises (MSEs) Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has approved a credit guarantee of Rs 1 lakh crore in the first seven months of the current financial year 2023-24, the government said Friday.

“In a major boost to the Micro, Small and Medium Enterprises (MSME) sector, the CGTMSE has approved a credit guarantee of Rs 1 lakh crore in just seven months of the current financial year 2023-24,” the MSME ministry said in a statement.

In the previous fiscal 2022-23, the same was achieved in 12 months.

In a post on social media platform X, MSME minister Narayan Rane said: “CGTMSE’s crucial role in ensuring sustained growth, resilience, and employment generation for MSMEs is commendable”.

He said that this achievement is a testament to the government’s unwavering commitment to supporting MSMEs and providing them with access to affordable credit.

“The accelerated pace of credit guarantee approvals reflects the government’s proactive measures to facilitate financial support to MSMEs, thereby bolstering their contribution to the nation’s economic development,” the ministry added.The scheme offers guarantee on credits for loans up to Rs 2 crore, without third-party guarantee and collateral. The guarantee on coverages range from 75-85% (micro Enterprise up to Rs 5 lakh) and 50% of the coverage is for retail activity.

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