|
|
Govt to expand corpus of MSE credit guarantee fund
|
|
|
|
| Top Stories |
 |
|
|
|
SME Times News Bureau | 19 Jan, 2017
The central government on Wednesday said it will augment the corpus of 'Credit Guarantee Trust Fund for Micro and Small Enterprises' (CGTMSE) by an additional Rs 5,000 crore.
The decision to augment the fund was taken during a meeting of the Union Cabinet here held under the chairmanship of Prime Minister Narendra Modi.
According to Finance Minister Arun Jaitley, the approved package envisages augmenting the corpus of CGTMSE by Rs 5,000 crore to a total of Rs 7,500 crore.
The CGTMSE will be fully funded by the central government, Jaitley elaborated during a press briefing held after the cabinet meeting.
"The fund augmentation will lead to an increase in the loan limit under the scheme from Rs 1 crore to Rs 2 crore," Jaitley informed.
The move will also increase the coverage of the credit guarantee scheme for loans being extended to MSMEs by Non-Banking Financial Companies (NBFC).
"Augmentation of the corpus would facilitate larger flow of credit to MSEs. This, in turn, would lead to increased output and employment and thereby promote equity and inclusiveness," an official communique by the Union Cabinet said.
"As the scheme provides credit without collateral and third-party guarantee, the start-ups would be encouraged to set up enterprises based on innovation and new ideas."
Earlier, on December 31, 2016 Prime Minister Modi had announced the enhancement of credit guarantee scheme for the MSME sector for loans up to Rs 2 crore.
"Just as agriculture is vital for the economy, so are the medium and small scale enterprises, also called the MSME sector," the Prime Minister had said that time.
"Government has taken some decisions in the interest of small and medium businesses, which will also boost employment," he said in an address to the nation on New Year's Eve.
Noting that the central government underwrites loans given by banks to small businesses through a trust, he said that loans were covered up to one crore rupees and this limit was now being doubled.
"Earlier the scheme only covered bank loans. Hereafter it will cover loans given by NBFCs as well. This decision will enable better access to credit for small shop-owners and small enterprises," Prime Minister Modi had said.
"Banks and NBFCs will not levy high interest on these loans, as Government of India is bearing the cost of underwriting them," he had said.
|
|
|
| |
|
|
|
|
|
|
|
stand up india
Rajiv Somkuvar | Mon Jan 30 09:14:39 2017
Scheme is very good but implementation by banks?
Extending CG scheme to NBFC is a good move
Bhagawath Prasad | Fri Jan 27 10:06:48 2017
I will not agree with Salman's point of view , NBFC s function with certain disadvantages under RBI regulations , one of that is , they can borrow but can't take deposits from public hence they are expensive lenders , but in terms of reading SME requirements , they score few points more than nationalised or private banks , I would rather suggest to government to keep NBFCs as a front manager and pay processing fees for them , while banks do the funding for all government guaranteed lending schemes .
Prime minister's very good initiative to encourage MSMEs.
A.S.Salman | Wed Jan 25 05:04:37 2017
The prime minister's great initiative for the development and Startups both of MSMEs is praise worthy. The only precaution by the govt.should take is to strictly keep the interest rate bit lower. Also the govt.should be very much vigilant on the functioning of nbfcs,as their attitude is of old days village sahukars who used to exploit the poor and illiterate villagers as shown in the movie Mother India. If possible the government should keep away all NBFVs.
MSMEs Facility of India
Pulak Mistry | Wed Jan 25 05:01:55 2017
Central Government approved serious projects for the micro & small industry's but bank always refuse those proposal. So all the scheme are beyond to achieve our target.
BHAGAWATH PRASAD | Fri Jan 20 02:51:35 2017
I appreciate the fact government's decision to double scheme limit to 2crore , but in reality MSME needs and deserves much more than that , let's look at scenario of dollor exchange rate in last 5 years , from 48 to 68 it has igone up ,an increase of 44% , it means if SME imports 1crore worth machine in the year 2012, it will cost including duty 1.32 crore , assuming SME was doing a business of 5 crores per annum with that machine , it requires working capital of 1.75 crore 1.32 = 2.07 crore , CGMT scheme was just half of SME requirement , now with usd being up by 44% against rupee , same project will come to 1.9 cr machine 1.75 working capital = 3.65 crore , there by result of CGMT increased limit is proportionately same was in short of what was actually required.coming to accessing of this scheme with banker's is still the same and government operated SIDBI response is much worse and impractical approach , they will look at SMEs as an idiot and thief , Our PMs' and FM's intention is highly appreciable , but advisors have to be bit more practical in helping and enhancing business environment to create jobs.Half meal packages will only increase defaulters list with flawed CIBIL scoring methods.
|
|
|
|
|
|
|
| |
| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
| Japanese
Yen |
58.85 |
56.85 |
| As on 13 Aug, 2022 |
|
|
| Daily Poll |
 |
 |
| PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
| Commented Stories |
|
|
|
|
|
|
| |
|
