{"id":17392,"date":"2025-10-27T04:56:32","date_gmt":"2025-10-26T23:26:32","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=17392"},"modified":"2025-10-30T12:27:04","modified_gmt":"2025-10-30T06:57:04","slug":"cgtmse","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/cgtmse\/","title":{"rendered":"Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) Scheme"},"content":{"rendered":"<h2><strong>About Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):<\/strong><\/h2>\n<ul>\n<li><strong>Ministry of Micro, Small &amp; Medium Enterprises<\/strong> (M\/o <strong>MSME<\/strong>) started <strong>Credit Guarantee Scheme for Micro &amp; Small Enterprises (MSEs)<\/strong> in the year 2000.<\/li>\n<li><strong>Objective<\/strong>: To catalyze the flow of institutional credit to Micro &amp; Small Enterprises (MSEs).\u00a0<\/li>\n<li>The scheme was formally <strong>launched on August 30, 2000,<\/strong> and is operational with effect from 1st January 2000.<\/li>\n<li>The scheme aims to <strong>facilitate access to credit for<\/strong> the unserved and underserved <strong>MSE segment of the MSME Sector, <\/strong>making the availability of credit from conventional lenders to new generation entrepreneurs and underprivileged, that lack supporting their loan proposal with collateral security and\/or a third-party guarantee.<\/li>\n<li>In order <strong>to implement <\/strong>the Credit Guarantee <strong>Scheme, CGTMSE<\/strong> was <strong>jointly set up by<\/strong> the <strong>M\/o MSME, Government of India,and<\/strong> Small Industries Development Bank of India (<strong>SIDBI<\/strong>).<\/li>\n<li><strong>Funding<\/strong>: The corpus of CGTMSE is being contributed by the <strong>Government of India<\/strong> and <strong>SIDBI in the ratio of 4:1.<\/strong><\/li>\n<li><strong>Eligible Lending Institutions:<\/strong>\n<ul>\n<li><strong>Scheduled commercial banks<\/strong> (Public Sector Banks\/Private Sector Banks\/Foreign Banks) and <strong>select Regional Rural Banks<\/strong> (which have been classified under the &#8216;Sustainable Viable&#8217; category by NABARD).<\/li>\n<li><strong>National Small Industries Corporation Ltd<\/strong>. (NSIC), North Eastern Development Finance Corporation Ltd. (NEDFi), <strong>SIDBI, selected Small Finance banks,<\/strong> and <strong>NBFCs<\/strong> have also been made eligible institutions.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Eligible Credit Facility:<\/strong>\n<ul>\n<li>CGTMSE facilitates <strong>collateral free credit support<\/strong> of <strong>upto Rs. 5 crores <\/strong>to MSEs, extended by the CGTMSE\u2019s Member Lending Institutions.<\/li>\n<li>The extent of guarantee cover is <strong>85% for micro enterprises for credit up to Rs. 5 lakhs<\/strong>. For credit ranging from Rs. 5 lakhs to Rs. 500 lakhs, the extend of guarantee cover is 75%.<\/li>\n<li>The extent of guarantee cover is <strong>80% for loans\/credits in the North East Region<\/strong> (incl. Sikkim, UT of Jammu &amp; Kashmir, and UT of Ladakh) for credits <strong>up to Rs. 50 lakhs. Above Rs.50 lakhs, guarantee cover is 75%.<\/strong><\/li>\n<li>The extent of guarantee cover is <strong>85%for MSMEs <\/strong>owned\/<strong>operated by SC\/ST<\/strong> entrepreneurs, <strong>Persons with Disabilities<\/strong> (PwDs), <strong>MSEs situated in Aspirational Districts<\/strong>, ZED certified MSEs and <strong>MSE promoted by Agniveers.<\/strong><\/li>\n<li>Extent of guarantee cover is <strong>90% for MSME owned\/operated by women.<\/strong><\/li>\n<li>For all other category of borrowers, the Extent of guarantee cover is 75%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>In cases of default<\/strong>, the <strong>trust settles the claim up to 75%<\/strong> (85%\/80% wherever applicable) of the <strong>amount in default<\/strong> of the credit facility extended by the lending institution.<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q1<\/strong>: What is the Small Industries Development Bank of India (SIDBI)?<\/h3>\n<p>Small Industries Development Bank of India (SIDBI) was established under an Act of the Parliament in 1990. SIDBI is the Principal Financial Institution engaged in promotion, financing &amp; development of the Micro, Small and Medium Enterprises (MSMEs) sector and coordination of the functions of the various institutions engaged in similar activities.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.business-standard.com\/industry\/news\/enhanced-credit-guarantee-coverage-to-profit-2-7-mn-women-led-msmes-manjhi-124091700809_1.html\" target=\"_blank\" rel=\"nofollow noopener\">Enhanced credit guarantee coverage to profit 2.7 mn women-led MSMEs: Manjhi<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) facilitate access to credit for the unserved and underserved MSE segment of the MSME Sector.<\/p>\n","protected":false},"author":5,"featured_media":17393,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-17392","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/17392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=17392"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/17392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/17393"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=17392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=17392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=17392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}