Credit and Finance for MSMEs: The credit assure fund trust for micro and tiny enterprises (CGTMSE), which operates the credit assure scheme for micro and tiny enterprises (MSEs), has accorded assure approval to 67,171 loan accounts of females entrepreneurs for an quantity of Rs 3,366.63 crore as of December 12, 2020, 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. The accounts authorized in the course of FY20 for females entrepreneurs beneath CGTMSE to help their small business expansion and development stood at 1,24,984 involving Rs 5,367.38 crore. Gadkari shared information in reply to the query on the quantity of females entrepreneurs who benefitted beneath the government scheme for straightforward credit availability.
Jointly set-up by the MSME Ministry and Small Industries Development Bank of India (SIDBI), CGTMSE delivers credit assure to monetary institutions to provide collateral-no cost loans to MSEs. The government had enhanced the loan disbursal limit 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. Moreover, the scheme’s corpus was also enhanced from Rs 2.5 lakh crore to Rs 7.5 lakh crore. The government had extended the assure of Rs 45,215.35 crore in 8,38,947 loan accounts in FY20 up from 30,168.57 in 4,35,520 accounts in FY19, according to the MSME Dashboard information published by the MSME Ministry.
Also study: PM Modi’s Standup India: Loans to SC/ST, females entrepreneurs jump 21% sanctioned quantity nears Rs 25k cr
Among the top states in terms of the guarantees authorized towards loan accounts of females entrepreneurs as of December 31, 2020, have been Tamil Nadu (8,593 accounts involving Rs 394.50 crore), Uttar Pradesh (6,289 accounts involving Rs 334.59 crore), Madhya Pradesh (5,927 accounts with Rs 215.42 crore quantity), Andhra Pradesh (5,208 accounts with Rs 143.16 crore), Karnataka (4,776 accounts involving Rs 295.22 crore), and so forth.
Importantly, in order to provide impetus towards credit availability for tiny enterprises, SIDBI had launched an on the internet portal Udaan for MSEs to get a provisional assure certificate to avail collateral-no cost loans from SIDBI’s member lending institutions (MLIs) beneath CGTMSE. Gadkari in June final year had announced the Cabinet approval to a distressed assets fund of Rs 4,000 crore and Fund of Funds with a corpus of Rs 10,000 crore to help MSMEs. The distressed fund was element of the Rs 20,000 crore subordinate debt announced by Finance Minister Nirmala Sitharaman as element of the Covid package for MSMEs. However, there was no current update by the government on the distressed asset fund allocation.