Credit Guarantee Fund Trust For Micro and Small Enterprises

Sectorwise performance.

gets a head start with collateral free credit / loans by banks covered under

Enabling Collateral free loans to

Strengthening with

Rebooted CGTMSE allows annual guarantee fee to be charged on Outstanding Loan Amount, CGS to cover retail segment also In an event to Reboot the CGTMSE organized by the Ministry of MSME, CGTMSE and SIDBI, It has been announced that the Annual Guarantee Fee will now on be charged on Outstanding loan amount rather than the sanction loan amount. It has also been decided

With increased corpus fund for CGTMSE, govt committed to handhold MSMEs: Giriraj Singh Eyeing at facilitating relief for the Micro, Small and medium Enterprises (MSME) sector, Minister of State (I/C) for MSME Giriraj Singh said that the government has increased the corpus for Credit Guarantee Fund Trust for Micro and Small Enterprises

Restructuring of CGTMSE to help MSMEs, encourage banks to offer loan: SIDBI Chairman The newly restructured Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is designed in a way that it helps the Micro and Small Enterprises on one hand and at the same time encourage banks to offer loans to the sector, Small Indust

Milestone Achieved

Ministry of MSME & CGTMSE jointly organised an event on February 20, 2018 wherein following structural changes in Credit Guarantee Scheme were unveiled:

1. Charging Annual Guarantee Fees (AGF) on Outstanding Loan Amount rather than sanction amount [as being done currently] under CGTMSE. This has been long standing demand of the Member Lending Institutions (MLIs) and MLIs expect huge uptake in guarantee backed loans due to this. Further, this change will incentivise the disciplined MSE borrower.

2. Expanding the Coverage of the Credit Guarantee Scheme (CGS) to cover MSE Retail Traders segment, which would enable considerable scope of expansion as the segment forms a large chunk of the MSE Sector.

3. Allowing loans with Partial Collateral Security under Credit Guarantee Scheme. This apart from bring this large chunk of loans under the ambit of credit guarantees would also help in promoting disciplined credit behaviour.

4.Increase in the extent of guarantee coverage for proposals above ₹50 lakh would make the scheme more attractive for the MLIs and enable increase credit flow in the category.

5.Introducing new product for NBFCs to enable them to avail loan guarantees under the credit guarantee scheme. Allowing NBFCs to avail benefits of credit guarantee would increase the scheme coverage as NBFCs have become an integral part in meeting credit demand of MSE sector.

6.Enhancing IT infrastructure of the Trust to improve operational efficiencies and reduce the turnaround time for claim settlement. The whole process of availing guarantees and claim settlement is expected to be digitised to enable better experience for borrowers and Member Lending Institutions.

7.Trust is moving towards prudent functioning by embedding risk management tools within the scheme. The objective is to make the Trust self-sustainable.

The above mentioned steps undertaken by the Trust are expected to greatly increase the attractiveness of the scheme and increase the operational efficiency of the Trust. This in turn is expected to increase the credit guarantees availed by MLIs and help in enhanced flow of credit to the MSE sector and betterment of the sector as a whole.

in the gracious presence of Shri Giriraj Singh, Minister of MSME.
Small Industries Development Bank of India

Chhoti sii Aasha | छोटी सी आशा Job Seeker becomes Job Provider

a huge success under the gracious leadership of Shri Giriraj Singh, Minister of MSME

RBI extends NPA recognition period for GST registered MSME borrowers to 180 Days from current 90 days

Giriraj Singh on Twitter “RBI extends NPA recognition period for GST registered MSME borrowers to 180 Days https://t.co/DepkpHLF0l”

Budget and Credit Guarantee Corpus.

Credit Guarantee Fund Trust on Twitter “Earlier corpus of the Credit Guarantee Fund of Rs 2,500 crore increased to Rs 7,500cr. Enhancement witb structural reforms in CG schems, would improve credit growth and employment generation in sector. ”

CGTMSE Peels off the Obstacles to MSE

New turnover based MSME classification.

Credit Guarantee Fund Trust on Twitter “ the proposed turnover based classification would really be a welcome steps towards betterment of the and sector.”

New Logo of CGTMSE

Md.Mustafa on Twitter “New cgtmse logo”

https://twitter.com/MdMusta12266559/status/962013215688454144

We are bringing a complete restructuring in processes for operating the Credit Guarantee Scheme enabling the MSE sector to avail faster loans without collateral security from lenders / bankers.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), has established itself as an important institution in facilitating flow of collateral free credit to units in micro and small enterprise (MSE) sector in the last 17 years of its existence.

The Trust crossed an important milestones in FY 2016-17 by recording cumulative guarantee approvals of over 25 lakh with an aggregate loan amount of over 1,25,000 crore. CGTMSE has leveraged technology to achieve this scale and the entire operations is carried out online. With a view to improving the operational processes and provide better service to its Member Lending Institutions (MLIs)