CGTMSE Loan: Scheme For The Micro And Small Industries

Outlook Money

Credit Guarantee Schemes

A revised Credit Guarantee Scheme for the micro and small industries (MSMEs) of the country came into effect from April 1, 2023.


Credit guarantee limit

MSME Ministry had said that the guarantee limit has been increased from Rs 2 crore to Rs 5 crore.

Guarantee limit

Benefits for small businessmen

An investment of Rs 8,000 crore was made in the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) fund on March 30, 2023.

small businessmen

Legal Proceedings

There is no need to initiate legal proceedings for settlement of claims in respect of guarantees for outstanding credit up to Rs 10 lakh.

Legal Proceedings

Annual Guarantee Fee

The annual guarantee fee of 0.37% per annum for credit up to Rs 1 crore is levied. This reduced the overall cost of credit for micro and small enterprises to a great extent.

Compiled by Syed Muskan