The recent budget announcement on doubling of the eligible credit limit under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme to Rs 2 crore from Rs 1 crore is expected to improve MSEs’ access to capital. MSEs have limited financial resources. Yet, limited inclusion in the formal banking system compels them to largely deploy self-financed capital. Any move to boost flow of formal capital, therefore, augurs well for the sector.However, CGTMSE has so far been the preserve of public sector banks because of directed lending under government schemes.
Private sector banks have been reluctant to
Private sector banks have been reluctant to
