Govt launches the revamped CGTMSE Scheme, Check new features and benefits

- Advertisement -

The Union Minister for MSME, Shri Narayan Rane, launched the revamped CGTMSE Scheme in Mumbai. The scheme has been provided with an additional corpus support of ₹9,000 crore in the Union Budget for FY 2023-24 to provide a guarantee for an additional ₹2 lakh crore to Micro & Small Enterprises.

The major revamp measures were launched and disseminated to the lending institutions, which included a reduction in guarantee fees for loans up to ₹1 crore by 50%, bringing the minimum guarantee fee to the level of 0.37% pa only. Another major change announced was raising the ceiling for a guarantee from ₹2 crore to ₹5 crore and enhancing the threshold limit for claim settlement without initiation of legal action to ₹10 lakh.

During the launch of the revamped measures, Shri Narayan Rane impressed upon the lending institutions to make the best use of the liberalization to ensure enhanced lending to the MSE Segment without insisting for collateral. He expressed confidence that such measures would enthuse bankers to reduce their dependence on the availability of collateral security, which continues to be a problem for MSEs, especially the first-generation entrepreneurs.

- Advertisement -

The Secretary, Shri B B Swain, apprised that CGTMSE was also collaborating with various State Governments for enhanced guarantee coverage for MSEs in respective States. He exuded confidence that all policy level modifications, along with other initiatives being taken by CGTMSE, would result in greater utilization of the guarantee mechanism.

Shri S Ramann, Chairman and Managing Director, SIDBI (who is also the Chairman of CGTMSE), said that CGTMSE has been taking various initiatives that aim at boosting credit flow to MSEs by making the guarantee Scheme attractive for both MSEs as well as for the lenders. He also indicated that CGTMSE would come out with more schemes and assured the lenders that it would always be nimble-footed in responding to their requirements.

Banks that had best utilized the guarantee Scheme were felicitated by the Union Minister. Senior executives of banks and NBFCs appreciated the changes being brought in the Scheme and expressed confidence that these measures will go a long way in facilitating collateral-free lending to MSEs in the country and thus create employment in a big way.

- Advertisement -

During the function, it was announced that CGTMSE will collaborate with the National Institute for Micro, Small, and Medium Enterprises (ni-msme), Hyderabad, for setting up a Center of Financial Inclusion for MSME.

- Advertisement -

Share this article...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Fake Currency Notes Found in Punjab National Bank Currency Chest in Agra

Fake Currency Notes Found in Punjab National Bank in Agra

Congress Questions Steel Minister on Disinvestment and Privatization of Steel Plants

Congress Questions Steel Minister on Disinvestment and Privatization of Steel Plants

Yes Bank and IDFC First Bank Announce Initiatives to Boost Corporate Lending

Yes Bank and IDFC First Bank Announce Initiatives to Boost Corporate Lending

Union Minister says BPCL privatization plan has been put on hold

Union Minister says BPCL privatization plan has been put on hold

86% Employees not happy with their life in India: Report

Low Employee Wellbeing in India: Gallup 2024 Report Reveals Alarming Statistics

PNB next MD & CEO appointment process to start from July

Appointment of Next Managing Director and CEO of Punjab National Bank (PNB) and Expectations for the Future

What are the Expectations of Banking Industry from Newly Formed Modi Government?

What are the Expectations of Banking Industry from Newly Formed Modi Government?

SBI Annual Report 2024 [Download PDF]

SBI Annual Report 2024 [Download PDF]

Bank of Baroda Officers start nationwide protest against Transfer Policy

Bank of Baroda Officers start nationwide protest against Transfer Policy

Bank Privatization: Can PM Modi privatize Banks after formation of coalition government?

Bank Privatization: Can PM Modi privatize Banks after formation of coalition government?

Latest News