Credit and Finance for MSMEs: The loan accounts approved during FY20 for women entrepreneurs under CGTMSE to support their business expansion and growth stood at 1,24,984 involving Rs 5,367.38 crore.
Credit and Finance for MSMEs: The credit guarantee fund trust for micro and small enterprises (CGTMSE), which operates the credit guarantee scheme for micro and small enterprises (MSEs), has accorded guarantee approval to 67,171 loan accounts of women entrepreneurs for an amount of Rs 3,366.63 crore as of December 12, 2020, in the current financial year, according to the data shared by the MSME Minister Nitin Gadkari in a written reply to a question in the Rajya Sabha. The accounts approved during FY20 for women entrepreneurs under CGTMSE to support their business expansion and growth stood at 1,24,984 involving Rs 5,367.38 crore. Gadkari shared data in reply to the question on the number of women entrepreneurs who benefitted under the government scheme for easy credit availability.
Jointly set-up by the MSME Ministry and Small Industries Development Bank of India (SIDBI), CGTMSE offers credit guarantee to financial institutions to provide collateral-free loans to MSEs. The government had increased the loan disbursal limit from Rs 1 crore to Rs 2 crore, former MSME Minister Giriraj Singh had said in February 2019, according to a statement by the ministry. Moreover, the scheme’s corpus was also enhanced from Rs 2.5 lakh crore to Rs 7.5 lakh crore. The government had extended the guarantee of Rs 45,215.35 crore in 8,38,947 loan accounts in FY20 up from 30,168.57 in 4,35,520 accounts in FY19, according to the MSME Dashboard data published by the MSME Ministry.
Among the leading states in terms of the guarantees approved towards loan accounts of women entrepreneurs as of December 31, 2020, were Tamil Nadu (8,593 accounts involving Rs 394.50 crore), Uttar Pradesh (6,289 accounts involving Rs 334.59 crore), Madhya Pradesh (5,927 accounts with Rs 215.42 crore amount), Andhra Pradesh (5,208 accounts with Rs 143.16 crore), Karnataka (4,776 accounts involving Rs 295.22 crore), etc.
Importantly, in order to provide impetus towards credit availability for small businesses, SIDBI had launched an online portal Udaan for MSEs to get a provisional guarantee certificate to avail collateral-free loans from SIDBI’s member lending institutions (MLIs) under CGTMSE. Gadkari in June last year had announced the Cabinet approval to a distressed assets fund of Rs 4,000 crore and Fund of Funds with a corpus of Rs 10,000 crore to support MSMEs. The distressed fund was part of the Rs 20,000 crore subordinate debt announced by Finance Minister Nirmala Sitharaman as part of the Covid package for MSMEs. However, there was no recent update by the government on the distressed asset fund allocation.