In a significant step to bolster women entrepreneurship, the Ministry of Micro, Small, and Medium Enterprises (MSME) has announced increased credit support for women-owned micro and small enterprises (MSEs). This move aims to provide greater financial assistance to women entrepreneurs through the Collateral-Free Loan Scheme, known as CGTMSE.
What’s New in the CGTMSE Scheme?
On Tuesday, MSME Minister Jitan Ram Majhi revealed that the CGTMSE scheme now offers enhanced credit guarantees for women-owned MSEs. Under the updated scheme, these enterprises will receive a credit guarantee coverage of 90%. This means that women-owned businesses can now secure loans with a higher level of protection from default, making it easier for them to access funding.
The improved scheme was approved by the CGTMSE Board on September 9, 2024. Along with the increased guarantee coverage, the scheme also includes a reduction in the annual guarantee fee. This change is expected to make loans more accessible and affordable for women entrepreneurs.
Benefits for Women Entrepreneurs
According to Minister Majhi, approximately 27 lakh women-led MSEs will benefit from this initiative. This follows an earlier extension of the CGTMSE scheme in December 2022, which initially provided an 85% credit guarantee for loans up to Rs 2 crore, later increased to Rs 5 crore.
The government aims to provide credit guarantees worth Rs 5 lakh crore to MSEs over the next two years under CGTMSE. Earlier this year, the credit guarantee amount approved doubled to Rs 2 lakh crore in FY24, marking the highest figure ever recorded for a single financial year. In comparison, the previous fiscal year saw guarantees totaling Rs 1.04 lakh crore.
Supporting Women MSEs
In addition to the credit guarantee enhancements, the ministry has been actively supporting women MSEs through its Yashasvini Campaign. Launched in June this year, the campaign focuses on raising awareness about government schemes, promoting formalization, registration, and capacity-building for women entrepreneurs.
The first campaign event took place in Jaipur in July, leading to over 4,000 Udyam and UAP registrations. The second event was held in Ranchi on September 11, engaging 200 women entrepreneurs and self-help groups.
Growth in MSME Registrations
Minister Majhi also highlighted a significant increase in Udyam registrations, from 1.06 crore in 2023 to 5.07 crore in 2024. This surge in registrations is expected to create approximately 21 crore employment opportunities.
Under the Prime Minister’s Employment Generation Programme (PMEGP), 26,426 new micro enterprises have been established in the past 100 days, with loan disbursements totaling Rs 3,148 crore. This initiative is anticipated to provide job opportunities for around 2.11 lakh people.
Conclusion
The enhanced CGTMSE scheme is a major boost for women entrepreneurs, providing them with better financial security and support. Coupled with ongoing campaigns and increasing MSME registrations, these efforts are set to foster a more inclusive and dynamic entrepreneurial ecosystem in India.
