Credit Guarantee Scheme for Micro & Small Enterprises:
The Ministry of MSME implements the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which was jointly set up by the Ministry of MSME, Government of India, and SIDBI in the year 2000.
The scheme aims to provide credit guarantees for the credit facilities extended to MSEs by the Member Lending Institutions (MLIs), without the requirement of collateral security or third-party guarantees.
Over past two and half decades, CGTMSE has established itself as an important institution endeavoring to increase the flow of credit to MSEs segment without the hassle of collateral security or third-party guarantees. With effect from 01.04.2025, this scheme facilitates credit guarantees for credit support of upto Rs. 10 crore to MSEs, extended by the MLIs.
To know more about the detailed guidelines, check out: https://cgtmse.in
Important Circulars:
1. Increase in ceiling of guarantee coverage from Rs. 5 crore to Rs. 10 crore-
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2. Reduction in Annual Guarantee Fees for guarantees above 1 crore-
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3. Extending special benefits to MSEs promoted by Transgender-
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4. Enhancement in extent of guarantee coverage in respect of Women-led Enterprises from 85% to 90%-
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5. Special provision for Informal Micro Enterprises (IMEs)-
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To know more about other Circulars, check out: https://cgtmse.in/Circulars