May 4, 2015: The Credit Guarantee Fund Scheme for Micro and Small enterprises was launched by the Government to give impetus to the young entrepreneurs in the micro and small scale industries. The scheme is being operated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) set up jointly by the Government of India and Small Industries Development Bank of India (SIDBI). The objective of the scheme is to make available collateral free credit facility (term loan and/ or working capital) extended by eligible lending institutions to new and existing micro and small enterprises up to Rs 10 million per borrowing unit. The corpus of CGTMSE is contributed by the Government of India and SIDBI in the ratio of 4:1. At present, 133 eligible institutions comprising 26 Public Sector Banks, 21 Private Sector Banks, 73 Regional Rural Banks (RRBs), 4 Foreign Banks and 9 other institutions have become Member Lending Institutions (MLIs) of CGTMSE for participating under the Credit Guarantee Scheme. As on March 31, 2015, cumulatively 18,17,245 proposals for an amount of Rs 904.45 billion have been approved.
This information was given by the Minister of State, Micro, Small and Medium Enterprises, Kalraj Mishra in a written reply to a question in Rajya Sabha.
