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Almost 70K women borrowers get credit guarantee under Modi govt's lead MSME support scheme

The credit guarantee reserve trust for micro and small enterprises (CGTMSE), which works the credit guarantee conspire for micro and small enterprises (MSEs), has concurred ensure approval to 67,171 loan records of women entrepreneurs for a amount of Rs 3,366.63 crore as of December 12, 2020, in the current financial year, as per the information shared by the MSME Minister Nitin Gadkari in a composed answer to an inquiry in the Rajya Sabha. The records affirmed during FY20 for women entrepreneurs under CGTMSE to help their business extension and development remained at 1,24,984 including Rs 5,367.38 crore. Gadkari shared information in answer to the inquiry on the number of women entrepreneurs who profited under the public authority conspire for simple credit accessibility. 

Together set-up by the MSME Ministry and Small Industries Development Bank of India (SIDBI), CGTMSE offers credit assurance to monetary organizations to give insurance free advances to MSEs. The public authority had expanded the credit disbursal limit from Rs 1 crore to Rs 2 crore, previous MSME Minister Giriraj Singh had said in February 2019, as indicated by an assertion by the service. In addition, the plan's corpus was additionally upgraded from Rs 2.5 lakh crore to Rs 7.5 lakh crore. The public authority had broadened the assurance of Rs 45,215.35 crore in 8,38,947 credit accounts in FY20 up from 30,168.57 in 4,35,520 records in FY19, as per the MSME Dashboard information distributed by the MSME Ministry. 

Among the main states in terms of the guarantees approved towards loan accounts of women entrepreneurs as of December 31, 2020, were Tamil Nadu (8,593 records including Rs 394.50 crore), Uttar Pradesh (6,289 records including Rs 334.59 crore), Madhya Pradesh (5,927 records with Rs 215.42 crore sum), Andhra Pradesh (5,208 records with Rs 143.16 crore), Karnataka (4,776 records including Rs 295.22 crore), and so forth. 

Significantly, to give stimulus towards credit accessibility to small businesses, SIDBI had launched an online portal Udaan for MSEs to get a temporary assurance declaration to benefit collateral-free from SIDBI's part loaning establishments (MLIs) under CGTMSE. Gadkari in June a year ago had declared the Cabinet approval to an distressed resources asset of Rs 4,000 crore and Fund of Funds with a corpus of Rs 10,000 crore to help MSMEs. The distressed asset was essential for the Rs 20,000 crore subordinate debt reported by Finance Minister Nirmala Sitharaman as a component of the Covid bundle for MSMEs. In any case, there was no new update by the public authority on the distressed asset fund allocation. 

CA Vikas Jain - Chief Advisor

Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...

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CA Vikas Jain

CA Vikas Jain - Chief Advisor

Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...

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