Objectives:
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- Strengthen credit delivery system.
- Facilitate collateral free credit to MSME sector.
- Create access to finance for unserved, under-served and under-privileged.
Features:
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- It was launched in 2000.
- Credit Guarantee Fund Trust for Micro and Small enterprises (CGFTMSE) is setup by Ministry of MSME in collaboration with SIDBI.
- Eligibility:
- Both existing and new enterprises can apply for credit.
- Activities related to both manufacturing and service delivery are applicable, including trading and training.
- SHGs and Agriculture are not covered.
- All scheduled commercial banks, selected Regional Rural Banks, micro finance institutions, small finance banks, NBFCs, urban cooperative banks etc. can lend to eligible borrowers.
- Credit facilities (fund and non-fund based) of upto Rs 500 lakhs per eligible borrower are covered.
- Tenure of guarantee: 5 years
