: CGTMSE: MSE loan guarantees jump 14% to over 7 lakh in FY22 #FinanceIndia #StockMarketNEWS CGTMSE: MSE loan guarantees jump 14% to over 7 lakh in FY22 New Delhi, April 11 (KNN) The Credit Guarantee

@StockMarketNEWS Tue 12 Apr, 2022

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CGTMSE: MSE loan guarantees jump 14% to over 7 lakh in FY22 #FinanceIndia #StockMarketNEWS
CGTMSE: MSE loan guarantees jump 14% to over 7 lakh in FY22 New Delhi, April 11 (KNN) The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which offers guarantee cover to lenders for collateral-free lending to micro and small enterprises (MSEs), approved over 7 lakh guarantees in FY22, the second highest in eight years, according to the government data.

Loan guarantees of 7,09,883 cumulatively for Rs 55,217.74 crore, up 14 percent from FY21, were approved in the last financial year as post-Covid recovery saw enhanced credit demand among small businesses.

8.38 lakh guarantees, the highest since FY15, and 6.19 lakh guarantees were approved in FY20 and FY21 respectively, showed data from MSME Dashboard. The dip in FY20 was due to temporary shutdown of business activity post the first wave of the pandemic.

In terms of claims settled in FY22, 32,963 claims amounting to Rs 742 crore were settled, up from 26,427 claims involving Rs 565 crore settled in FY21 but down from 39,937 claims involving Rs 880 crore settled in FY20, the highest since FY15.

Meanwhile, to further improve credit flow to MSMEs, Finance Minister Nirmala Sitharaman in this year’s budget had announced revamping the scheme with the required infusion of funds. This would facilitate additional credit of Rs 2 lakh crore for micro and small enterprises and expand employment opportunities, Sitharaman had said.

However, the loan disbursal limit under CGTMSE wasn’t enhanced by Sitharaman from the existing Rs 2 crore against industry expectations. Nonetheless, it was again recommended by the Parliamentary Standing Committee on Industry last month to increase the limit to Rs 5 crore irrespective of the company type such as private ltd., limited liability partnership, partnership or proprietorship.

The suggestion was part of the 315th report on Demands for Grants (2022-23) pertaining to the MSME Ministry presented by the panel headed by Rajya Sabha member Dr K Keshava Rao. (KNN Bureau)

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