Credit Guarantee Trust For Micro And Small Enterprises (CGTMSE) Scheme:
The Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) Scheme has approved a credit guarantee of Rs. 1 lakh crore in just 7 months of the current financial year 2023-24.
- Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) Scheme was launched in 2000.
- The corpus of CGTMSE is being contributed by the Government of India and the Small Industries Development Bank of India (SIDBI) in the ratio of 4:1.
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is jointly set up by the Ministry of Micro, Small, & Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India (SIDBI) to catalyse the flow of institutional credit to Micro & Small Enterprises (MSEs).
- CGTMSE has been instrumental in providing guarantee cover to collateral and/or third-party guarantee-free credit facilities extended by eligible Member Lending Institution [MLIs] to MSEs.
- Small Industries Development Bank of India was established under an Act of Parliament in 1990.
- It is the Principal Financial Institution engaged in the promotion, financing & development of the Micro, Small and Medium Enterprises (MSMEs) sector and the coordination of the functions of the various institutions engaged in similar activities.
- The main objective of SIDBI is to offer loans (both direct and indirect) to MSMEs to help address the development and financial gaps in the ecosystem of MSMEs.
