Ease of Doing Business for MSMEs: Both platforms will share the data with each other using API (Application Programming Interface) integration, which is a connection between two or more applications that allow systems to exchange data sources.
The Ministry of MSME announced the signing of a Memorandum of Association between Udyam and Credit Guarantee Fund Trust for Micro and Small Enterprises to share data of the registered enterprises on Udyam with the government’s collateral-free loan scheme for micro and small enterprises (MSEs). This collaboration is sought to enable more MSMEs to avail the benefits under the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE).
MSME Minister Narayan Rane took to Twitter to share the news, stating, “The Ministry of MSME (Udyam) and CGTMSEOfficial join forces through an MoU, enabling seamless sharing of Udyam Registration data with CGTMSE. This collaboration aims to provide greater coverage and benefits to our vibrant MSME sector.”
According to the information shared on Twitter, both platforms will share the data with each other using API (Application Programming Interface) integration, which is a connection between two or more applications that allow systems to exchange data sources. This will allow the CGT Fund access to the data of MSEs availing the CGT scheme facility across the enterprise and social categories.
The government’s Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE) is one of the key initiatives taken to provide micro and small enterprises (MSEs) with collateral-free loans.
Introduced back in July 2000 with an initial outlay of Rs 2,500 crore from the government and the Small Industries Development Bank of India (SIDBI), the scheme was strengthened in this year’s budget with an infusion of another Rs 9,000 crore in the CGTMSE corpus, effective April 1, 2023.
Under the scheme, for loans up to Rs 5 lakh, the guarantee cover available for micro-enterprises is up to 85 per cent, while for loans between Rs 5 lakh and Rs 5 crore, the cover is up to Rs 75 per cent.
For women entrepreneurs, SC-ST entrepreneurs, MSEs situated in aspirational districts, ZED-certified MSEs, etc., the guarantee cover available is up to 85 per cent for loans up to Rs 5 crore. For MSEs based in the Northeast region, Jammu & Kashmir and Ladakh, the cover limit is up to 80 per cent for loans up to Rs 50 lakh and up to 75 per cent for loans between Rs 50 lakh and Rs 5 crore.
Udyam is the government’s online registration and certification platform for MSMEs. Currently, Udyam has about 2.04 crore enterprises registered on it, out of which 1.97 crore are micro-enterprises, 5.56 lakh are small, and 52,568 enterprises are medium-sized. The government has made it mandatory for MSMEs to register on the Udyam platform in order to avail the benefits under various schemes dedicated to MSMEs.
