Credit Guarantee Fund Trust for Micro and Small Enterprises

CGTMSE recently organises a global symposium on credit guarantees. The event is currently relevant for formal credit access and collateral-free lending support to micro and small enterprises.

Credit Guarantee Fund Trust for Micro and Small Enterprises:

Dimension	Key Details
Origin	CGTMSE has been established in 2000.
Institutional Setup	CGTMSE is jointly set up by the Ministry of Micro, Small & Medium Enterprises and Small Industries Development Bank of India.
Aim	CGTMSE provides for enhanced formal credit availability without collateral by giving guarantees to existing and new enterprises in the MSE sector.
Mechanism	If a bank gives a collateral-free loan to an MSE and the borrower defaults, CGTMSE absorbs 75–90% of the loss.
Function	CGTMSE operates the Credit Guarantee Scheme for the MSE sector.