The Ministry of Micro, Small & Medium Enterprises (MSME) on April 27, 2023, launched the revamped CGTMSE Scheme, with an additional corpus support of 9,000 crores in the Union Budget for FY 2023-24 to revamp its Scheme to provide a guarantee for additional ₹2 lakh crore to Micro & Small Enterprises.
The modifications included a reduction in guarantee fees for loans up to 1 crore by 50% bringing the minimum guarantee fee to the level of 0.37% pa only. Another major change announced was raising the ceiling for a guarantee from 2 crores to 5 crores and enhancing the threshold limit for claim settlement without initiating legal action to 10 lakhs.
It is stated that the lending institutions make the best use of liberalization to ensure enhanced lending to the MSE Segment without insisting on collateral and such measures would enthuse bankers to reduce their dependence on the availability of collateral security which continues to be a problem for MSEs, especially the first generation entrepreneurs.
[Release ID: 1920289]
