Question : MUTUAL CREDIT GUARANTEE SCHEMES



(a) whether the Government are finalizing a plan for introduction of mutual credit guarantee schemes for Small Scale Industries;

(b) if so, the details thereof; and

(c) by when these are likely to be implemented?

Answer given by the minister

MINISTER OF SMALL SCALE INDUSTRIES AND MINISTER OF DEVELOPMENT OF NORTH EASTERN REGION(DR. C. P. THAKUR)



(a) to (c): The Government of India has requested the Credit Guarantee Fund Trust for Small Industries (CGTSI) to operationalise the Mutual Credit Guarantee Scheme (MCGS). The scheme aims to provide collateral free loans under which CGTSI gives counter guarantee to Mutual Credit Guarantee Funds set up by Industry Associations in respect of credit availed by their member small scale industrial units from the dedicated banks. The CGTSI has already started consultations with industry associations seeking their interest in setting up the MCGS.