Credit Guarantee Scheme Expanded to Rs 10 Crore Nationwide
The MSME Ministry announced that the Credit Guarantee Scheme via CGTMSE now offers collateral-free loans to MSEs with the guarantee ceiling raised to ₹10 crore and a 50% reduction in annual guarantee fees to as low as 0.37% to boost credit flow, including support for women-led and first-generation ventures. Banks are instructed under RBI to avoid collateral for loans up to ₹20 lakh for MSEs, while CGTMSE provides additional perks like a 10% AGF discount and 5% extra guarantee coverage in identified districts and through Tamil Nadu’s Tamil Nadu Credit Guarantee Scheme.