Govt extends Rs 14.69 lakh crore credit guarantees to small businesses since 2000
UPSC / SSC current affairs note · Economy
Why in news
The government informed Lok Sabha that since 2000, it has extended Rs 14.69 lakh crore in credit guarantees to micro and small enterprises (MSEs) under the Credit Guarantee Fund Scheme. Over 1.47 crore guarantees have been issued, highlighting the scheme's scale and importance for small businesses.
Background
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) was launched in 2000 to provide collateral-free credit to MSEs. It is operated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Key facts
Total credit guarantees extended: Rs 14.69 lakh crore since 2000.
Over 1.47 crore guarantees issued to micro and small enterprises.
Guarantees are collateral-free, reducing risk for lenders.
Scheme aims to boost credit flow to MSEs, which are vital for employment and GDP.
Data was presented in Lok Sabha in response to a query.
Prelims pointers
- Scheme: Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE).
- Implementing body: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Launched in 2000.
- Collateral-free credit up to Rs 2 crore (as per recent enhancements).
- Ministry: Ministry of Micro, Small and Medium Enterprises.
Mains angles
- GS3: Role of MSMEs in economic growth and employment generation.
- GS3: Government schemes for financial inclusion and credit access.
- GS3: Challenges in credit delivery to MSMEs and effectiveness of guarantee schemes.