Credit and Finance for MSMEs: The credit assure fund trust for micro and compact enterprises (CGTMSE), which operates the collateral-no cost credit assure scheme for MSEs, has authorized 5.99 lakh loans for an quantity of Rs 30,216.62 crore in the FY21 so far, according to the most up-to-date information from the MSME Ministry’s MSME Dashboard. Among the member lending institutions, Bajaj Finance led the tally in approving the highest quantity of loans – 1,95,855 for an quantity of Rs 4051.31 crore followed by Union Bank of India approving 84,951 loans involving Rs 2,655.80 crore, Canara Bank approving 57,875 loans with an quantity of Rs 3,607.87 crore, Punjab National Bank approving 48,970 loans involving Rs 1,743.89 crore, and so forth.
Importantly, according to the information from the Reserve Bank of India’s February bulletin, the MSME sector accounted for a share of about 18 per cent in the total credit to the market and about 5 per cent in the total non-meals credit extended by the scheduled industrial banks in November 2020. The sector’s gross bank credit deployment in December 2020 was up 6.6 per cent to Rs 11.31 lakh crore from Rs 10.61 lakh crore throughout the year-ago period.
Also study: Bank credit to micro, compact organizations up more than 6% in December from year-ago amid Covid, shows RBI data
Under the CGTMSE scheme, which delivers credit assure to monetary institutions to provide collateral-no cost loans to compact organizations, the loan disbursal limit was elevated from Rs 1 crore to Rs 2 crore, former MSME Minister Giriraj Singh had mentioned in February 2019, according to a statement by the ministry. Also, the scheme’s corpus was enhanced from Rs 2.5 lakh crore to Rs 7.5 lakh crore rupees. In FY20, 8,38,947 loan applications had been authorized vis-à-vis 4,35,520 applications in FY19. The quantity of applications authorized by CGTMSE in FY20 was also the highest in the preceding 5 monetary years, according to the MSME Ministry’s information.
Importantly, as of December 12, 2020, banks had accorded assure approval to 67,171 loan accounts of ladies entrepreneurs for an quantity of Rs 3,366.63 crore in the existing monetary year, according to the information shared by the MSME Minister Nitin Gadkari in a written reply to a query in the Rajya Sabha.