Credit Guarante

Know about this scheme :-

Related Scheme Scheme for 'Credit Guarantee Fund for Micro and SmalI Enterprises'
Description Banks and financial institutions are provided funding assistance under this scheme so that they can in turn lend collateral free credit to MSMEs
Nature of assistance Funding support to banks and financial institutions for lending collateral-free credit to MSMEs.
Who can apply? Banks and financial institutions can apply to office of DC-MSME/MSME-DIs . for availing support. MSMEs need to directly contact the respective banks for getting credit.
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To make available credit to Micro and Small Enterprises for loans up to Rs. 100 lakh without collateral/ third party guarantees

CGTMSE has been set up to strengthen credit delivery system and facilitate flow of credit to the MSE sector. The credit Guarantee under CGTMSE seeks to reassure the lender that, in the event of a MSE unit, which availed collateral free credit facilities, fails to discharge its liabilities to the lender; the CGTMSE would make good the loss incurred by the lender.

Establishment of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the credit Guarantee Fund Scheme for Micro and Small Enterprise.Launched on August, 2000 the corpus of CGTMSE is being contributed by the GOI and SIDBI in the ratio of 4:1 respectively.The corpus of CGTMSE has been enhanced to Rs. 2419.955 crore with the contribution of Rs. 1935.97 crore from the GoI and Rs. 483.985 crore from SIDBI.

As on 31.12.2015, cumulatively 21,60,975 credit applications have been provided guarantee coverage amounting Rs. 103864.11 crore since inception.

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 guarantee cover provided is up to 75% of the credit facility up to Rs.50 lakh (85% for loans up to Rs. 5 lakh provided to micro enterprises, 80% for MSEs owned/ operated by women and all loans to NER) with a uniform guarantee at 50% of the credit exposure above Rs.50 lakh and up to Rs.100 lakh. A composite all-in Annual Guarantee Fee of 1.0 % of the credit facility sanctioned (0.75% for credit facility upto Rs. 5 lakh and 0.85% for above Rs. 5 lakh and upto 100 lakh for Woman, Micro Enterprises and units in NER including Sikkim) is now being charged.

Performance :

Sl. No. FY Financial Expenditure
(Rs. in Crore)
Physical Achievements
1 2007-08 to 2011-12 649.01 733361
2 2012-13 35.00 288537
3 2013-14 74.99 348475
4 2014-15 74.99 273789
5 2015-16 24.74 350056
6 2016-17 0.00 0
Total 858.73 1994218

Last updated date : 28/09/2016