The special scheme for IMEs will encourage financial institutions to lend to these enterprises.
“This scheme will provide support and opportunity for micro/nano enterprises and is aimed at moderating the credit risk perception and will prompt the lending institutions to lend to IMEs,” said Micro, Small and Medium Enterprises minister Narayan Rane.
As this initiative unfolds, it is expected to empower individual entrepreneurs and create an inclusive, dynamic, and resilient economic ecosystem, he said while inaugurating four technology centres and two extension centres in Greater Noida, Uttar Pradesh.
The minister said stressed that MSMEs should strive hard and become world class, so that India can become self reliant.
CGTMSE offers guarantee on credits for loans up to Rs 2 crore, without third-party guarantee and collateral. The guarantee on coverages range from 75-85% (micro Enterprise up to Rs 5 lakh) and 50% of the coverage is for retail activity.In the last two financial years (2022-24), the government has infused Rs 9,000 crore in the corpus of CGTMSE to generate an additional credit of Rs 2 lakh crore with reduced cost.CGTMSE has also provided loans to women-led MSMEs, ensuring women empowerment through the growth and expansion of women-led firms.
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