Credit Guarantee Fund Scheme For MSMES
The Ministry of MSME launched Credit Guarantee Fund Scheme for Micro and Small Enterprises on 30th August 2000 to ensure better flow of credit to micro and small enterprises by minimizing the risk perception of financial institutions and banks. It is operated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) through the Trust’s member lending institutions. The Scheme covers collateral free credit facility (term loan and/ or working capital) extended by eligible lending institutions to new and existing micro and small enterprises up to Rs. 100 lakh per borrowing unit. The Scheme provides a maximum guarantee cover up to 85 percent of the credit.
All eligible applications forwarded by Member Lending Institutions (i.e. banks and other financial institutions) are approved by CGTMSE. As on 30th November 2011, 23,857 applications have been received from the State of Madhya Pradesh out of which 21,495 proposals have been approved under the scheme for a loan amount of Rs.1,00, 602.64 lakh.
The Ministry of MSME launched Credit Guarantee Fund Scheme for Micro and Small Enterprises on 30th August 2000 to ensure better flow of credit to micro and small enterprises by minimizing the risk perception of financial institutions and banks. It is operated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) through the Trust’s member lending institutions. The Scheme covers collateral free credit facility (term loan and/ or working capital) extended by eligible lending institutions to new and existing micro and small enterprises up to Rs. 100 lakh per borrowing unit. The Scheme provides a maximum guarantee cover up to 85 percent of the credit.
All eligible applications forwarded by Member Lending Institutions (i.e. banks and other financial institutions) are approved by CGTMSE. As on 30th November 2011, 23,857 applications have been received from the State of Madhya Pradesh out of which 21,495 proposals have been approved under the scheme for a loan amount of Rs.1,00, 602.64 lakh.
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