 "CRISIL cuts rating for J&K Bank deposits on asset quality concerns")
Micro and small enterprises (MSEs) are expected to benefit from the government’s move to double the eligible credit limit under the Credit Guarantee Scheme (CGS) to Rs 2 crore from Rs 1 crore and extend it to cover loans given by non-banking finance companies (NBFCs).
However, there are challenges, including the high-level of guarantees given under CGS, procedural delays under claim settlement and interest rate restriction. For one, in the past five financial years, the Credit Guarantee Fund Trust for Micro and Small Enterprises has approved guarantees totalling Rs 89,258 crore, compared with its corpus of Rs 2,432 crore.
However, there are challenges, including the high-level of guarantees given under CGS, procedural delays under claim settlement and interest rate restriction. For one, in the past five financial years, the Credit Guarantee Fund Trust for Micro and Small Enterprises has approved guarantees totalling Rs 89,258 crore, compared with its corpus of Rs 2,432 crore.
