Minister Narayan Rane launches the revamped CGTMSE Scheme

Minister Narayan Rane launches the revamped CGTMSE Scheme: Union Minister for MSME, Narayan Rane has launched the revamped Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme.

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Modifications:

Reduction in guarantee fees for loans upto ₹1 crore by 50% bringing the minimum guarantee fee to the level of 0.37% pa only. Raising of ceiling for guarantee from ₹2 crore to ₹ 5 crore. Enhanced the threshold limit for claim settlement without initiation of legal action to ₹10 lakh.

While launching the revamp measures Shri Narayan Rane impressed upon the lending institutions to make best use of liberalisation to ensure enhanced lending to the MSE Segment without insisting for collateral. He expressed confidence that such measures would enthuse bankers to reduce their dependence on availability of collateral security which continues to be a problem for MSEs, especially the first generation entrepreneurs.