Supreme Court: Driving Licence Renewal After a Gap Will Not Take Effect From Expiry Date  ||  Supreme Court: High Courts Cannot Quash Cheque Bounce Cases by Pre-Trial Inquiry Into Liability  ||  Supreme Court: Passport Renewal Cannot be Denied if Trial Court Has Permitted it Despite Pending Case  ||  SC: Delay in Depositing Sale Balance Does not Make Specific Performance Decree Inexecutable  ||  Supreme Court: Non-Compete Fees Qualify as Deductible Revenue Expenditure under Income Tax Act  ||  Supreme Court: Section 311 CrPC Should be Invoked Sparingly, Only When Evidence is Vital  ||  J&K&L High Court: Successive Bail Applications Can Be Filed Even Without Change in Circumstances  ||  Kerala HC: Fresh Arbitration Notice is Required For Second Arbitration After Prior Award Set Aside  ||  NCLT Hyderabad: Mortgaging Property Without Lending Money Does Not Constitute Financial Debt  ||  Supreme Court: Vacancies From Resignations under CUSAT Act Must Follow Communal Rotation    

Centre launches the revamped CGTMSE Scheme - (27 Apr 2023)

Commercial

Union Minister for MSME launched the revamped CGTMSE Scheme (Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme). CGTMSE has been provided with an additional corpus support of Rs. 9,000 crore in the Union Budget for FY 2023-24 to revamp its Scheme to provide guarantee for additional Rs. 2 lakh crore to Micro and Small Enterprises. Accordingly, the major revamp measures were launched and disseminated to the lending institutions.

The modifications included reduction in guarantee fees for loans upto Rs. 1 crore by 50% bringing the minimum guarantee fee to the level of 0.37% pa only. Another major change announced was raising of ceiling for guarantee from Rs. 2 crore to Rs. 5 crore and the threshold limit is enhanced for claim settlement without initiation of legal action to Rs. 10 lakh. While launching the revamp measures Union Minister impressed upon the lending institutions to make best use of liberalisation to ensure enhanced lending to the MSE Segment without insisting for collateral. These measures would enthuse bankers to reduce their dependence on availability of collateral security which continues to be a problem for MSEs, especially the first generation entrepreneurs.

Chairman and Managing Director, SIDBI (who is also the Chairman of CGTMSE) said that, CGTMSE has been taking various initiatives which aims at boosting credit flow to MSEs by making the guarantee Scheme attractive for both MSEs as well as for the lenders. He also indicated that CGTMSE would come out with more schemes and assured the lenders that it would always be nimble footed in responding to their requirements. These measures will go a long way in facilitating collateral free lending to MSEs in the country and thus, to create employment in a big way.

Tags : SCHEME   MEASURE   LAUNCH  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved