Question : Credit Guarantee Fund Trust for MSMEs

(a) whether the Government has, in collaboration with SIDBI, launched Credit Guarantee Fund Trust for Micro, Small and Medium Enterprises (MSMEs) for the benefit of Micro and Small Enterprises;

(b) if so, the details and salient features thereof along with the funds sanctioned and utilised and number of persons benefited therefrom during the last three years, State/UT-wise;

(c) the details of other such credit guarantee schemes and programmes available with the banks for micro and small entrepreneurs;

(d) whether any collaterals have to be provided for availing benefits of such schemes and if so, the details thereof; and

(e) the initiatives taken by the Government to assist the MSMEs in economically backward areas including Bundelkhand?

MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)

(a): Yes, Sir.

(b): Credit Guarantee Scheme for Micro and Small Enterprises is implemented by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide guarantees in respect of credit facilities extended by Lending Institutions to the borrowers in Micro and Small Enterprises (MSEs) sector.

The year-wise amounts sanctioned and released to CGTMSE under the scheme for last three years are as below:
<pre>
S.No. Financial Year Rs. in Crore
1. 2016-17 715.68
2. 2017-18 3002.00
3. 2018-19 744.94
</pre>

The details of beneficiaries during the last three years State/UT-wise are enclosed in Annexure.

(c): There is no other Credit Guarantee Scheme of the Ministry of MSME.

(d): CGTMSE has introduced a new “Hybrid Security Product” wherein the Banks / Lending Institutions are allowed to obtain collateral security for only the unsecured part of the credit facility. Collateral security and / or third party guarantee is not mandatory for the secured part of the credit facility, which is guaranteed by CGTMSE.

(e): The schemes of Ministry of MSME are implemented across the country including Bundelkhand area.