NEW DELHI: More than 8 lakh proposals have okayed for guarantee cover under the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) till end of July, 2012. The overall sanctioned loan amount stands at Rs 41,794.31 crore for 8,73,013 proposals. This information has been revealed by Vayalar Ravi, Union Minister for Overseas Indian Affairs, who was also given the additional responsibility of the MSME portfolio.
With the rising awareness, the coverage under this scheme for micro and small enterprises (MSEs) has jumped considerably in the past few years.
CGTMSE offers guarantee cover in regard to the credit facility extended to new and present MSEs (engaged in the manufacturing sector and also service sector) by Member Lending Institutions (MLIs) up to Rs 100 lakh per eligible borrower.
Although the coverage of loan under the scheme is optional, the efforts are made by CGTMSE to create awareness among the MSEs and MLIs for strengthening the coverage under the scheme.
The progression of the scheme is reviewed by Ministry of Micro, Small and Medium Enterprises (MSMEs) regularly. Moreover, the performance of the scheme has also been reviewed by Parliamentary Standing Committee on Industry, RBI Standing Advisory Committee on Credit Flow to Micro, Small and Medium Enterprises (MSMEs) and the RBI Empowered Committee on MSEs and the State Level Bankers Committees (SLBCs).