CGTMSE achieves milestone of approving 10 million guarantee to MSMEs

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) on Tuesday said it has achieved a milestone of approving 1 crore guarantees to MSE beneficiaries.

CGTMSE was set up by the central government and Sidbi in August 2000 to provide credit guarantees to micro and small enterprises, enabling them to access credit without the need for collateral and third-party guarantees.

To mark the occasion, an event was organised, and attended by CGTMSE chairman Manoj Mittal and CEO Manish Sinha and representatives of various banks, including State Bank of India, HDFC Bank and Union Bank, and MSMEs.

During the occasion, three Micro and Small Enterprises (MSE) borrowers and three prominent Member Lending Institutions (MLIs) were felicitated which have played a significant role in this achievement, CGTMSE said in a statement.

Speaking at the event, Mittal emphasised the transformative impact of credit guarantees on the MSE ecosystem, enabling businesses to access funding without collateral, third-party guarantee and achieve sustainable growth.

Credit guarantees worth Rs 4 trillion were extended in the last two years via the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

The government aims to ramp up credit guarantees extended to MSMEs through the CGTMSE scheme by another Rs 5 lakh crore in the next two years.