More SMEs getting aware of CGTMSE scheme: Minister

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SME Times News Bureau | 10 Aug, 2012
With more Indian micro, small and medium enterprises getting aware of the Credit Guarantee Fund Scheme for Micro and Small Enterprises, the coverage under the scheme has increased significantly in the recent years, said Union Minister for Overseas Indian Affairs, Vayalar Ravi who is currently looking after the parliamentary work of the MSME ministry.

"Under the CGTMSE, 8,73,013 proposals have been approved for guarantee cover for total sanctioned loan amount of Rs. 41,794.31 crore till July 31, 2012," said Ravi in a written reply to a question in the Lok Sabha on Thursday.

CGTMSE provides guarantee cover in respect of the credit facility extended to all new and existing MSMEs (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 the MSME ministry 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).