Credit and Finance for MSMEs: As of June 30 2022, 61.13 lakh guarantees involving Rs 3,35,321.59 crore were approved under CGTMSME since inception.
Credit and Finance for MSMEs: The government’s Credit Guarantee Scheme (CGS), which facilitates collateral-free credit flow to micro and small enterprises under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), has recorded a significant 52 per cent jump in loan guarantees in the financial year 2021-22, showed official data. Rs 56,172 crore guarantees were approved under the scheme in FY22, up from Rs 36,899 crore in FY21, indicating a jump in credit requirement for post-Covid business recovery. In comparison to pre-Covid FY20 guarantees approved worth Rs 45,851 crore, the jump in FY22 was 22.5 per cent.
Sharing data in Rajya Sabha, Minister of State for MSMEs Bhanu Pratap Singh Verma also noted the beneficiary count that stood at 7.17 lakh in FY22, 8.35 lakh in FY21, and 8.46 lakh in FY20. “CGTMSE aims to strengthen credit delivery system and to facilitate the flow of credit to the MSE sector, create access to finance for unserved, underserved and underprivileged,” said Verma.
The jump has been because of an increase in the average ticket size from around Rs 6 lakh to near Rs 7 lakh as MSEs needed more capital to revive their businesses. We expect this growth to be maintained as we are trying to rework the scheme’s parameters to take it to more beneficiaries. There has been a proactive approach from our side to reach out to more lenders,” Sandeep Varma, Chief Executive Officer, CGTMSE told Financial Express Online.