Revamped loan guarantee scheme for micro, small enterprises to be implemented from April 1
In Budget 2023-24, finance minister Nirmala Sitharaman announced the revamping of credit guarantee scheme for micro and small enterprises with effect from April 1, 2023, with an infusion of Rs 9,000 crore to the corpus to enable additional collateral-free guaranteed credit of Rs 2 lakh crore and the reduction in the cost of the credit by about 1 per cent.
The limit on ceiling for guarantees has also enhanced from Rs 2 crore to Rs 5 crore. Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) has issued guidelines in this regard.