Friday, 10 August 2012

Credit Guarantee Fund Scheme

Under the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) 8,73,013 proposals have been approved for guarantee cover for total sanctioned loan amount of Rs. 41,794.31 crore till 31st, July 2012. With increasing awareness, the coverage under the scheme has increased significantly in the recent years. 
CGTMSE provides guarantee cover in respect of the credit facility extended to all new and existing Micro and Small Enterprises (both in the manufacturing sector as well as in the service sector) by Member Lending
Institutions (MLIs) up to Rs. 100 lakh per eligible borrower, only if the credit facility is extended by MLIs without collateral security and/or third party guarantee. While the coverage of loan under the scheme is optional, concerted efforts are being made by CGTMSE to generate awareness among the Micro and Small Enterprises (MSEs) and the Member Lending Institutions (MLIs) for enhancing the coverage under the scheme. 
The progress of the scheme is reviewed by Ministry of Micro, Small and Medium Enterprises on regular basis. The performance of the scheme has also been reviewed by Parliamentary Standing Committee on Industry, RBI Standing Advisory Committee on Credit Flow to Micro, Small and Medium Enterprises (MSMEs) and the RBI Empowered Committee on MSEs and the State Level Bankers Committees (SLBCs). 
This information was given by Shri Vayalar Ravi, Union Minister for Overseas Indian Affairs looking after the Parliamentary work of the Ministry of Micro, Small and Medium Enterprises, in a written reply to a question in the Lok Sabha today. 

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