Centre launches revamped CGTMSE Scheme with additional Rs 9,000 cr corpus

• Union Minister for MSME, Shri Narayan Rane recently launched the revamped CGTMSE Scheme in Mumbai.
• CGTMSE stands for Credit Guarantee Fund Trust for Micro and Small Enterprises.
• The scheme was jointly set up by Ministry of Micro, Small & Medium Enterprises (MSME) and Small Industries Development Bank of India (SIDBI) in 2000, to facilitate flow of institutional credit to Micro & Small Enterprises (MSEs) sector. 
• The government has announced an additional corpus of ₹9,000 crore in the Union Budget for FY 2023-24 to revamp CGTMSE.
• This will provide guarantee for additional ₹2 lakh crore to Micro & Small Enterprises.
• Other changes in the revamped scheme includes:
  • Currently the ceiling for availing credit guarantee for CGTMSE is fixed at Rs. 200 lakh. This ceiling limit has been increased to Rs. 500 lakh per borrower for the credit facilities extended by eligible MLIs to the Micro and Small Enterprises (MSEs). Visit Here
  • It has been decided to bring down the cost of guarantee. The minimum guarantee fee for loans has been brought down to the level of 0.37% pa only. Visit here
  • The threshold limit for claim settlement without initiation of legal action ( Waiver of Legal Action) has been increased from ₹5 lakh to ₹10 lakh. Visit Here