The Ministry of MSMEs is considering hiking the guarantee cover limit under CGTMSE scheme to enhance the coverage of the scheme.

The top officials of Ministry of MSME, Indian Banks’ Associations and Credit Guarantee Trust for Micro and Small Enterprises met in Mumbai last week to discuss enhancing the coverage of CGTMSE scheme from the current level of Rs. 50 lac.

Under the Credit Guarantee Fund Scheme, which is managed by the government and Small Industries Development Bank of India (SIDBI) jointly, the small and medium enterprises (SME) sector is provided bank loan without any collateral up to Rs. 50 lac. Both the term loans and working capital loans are covered under the scheme.

Experts from Malaysia, South Korea and USA shared their experiences of running credit guarantee schemes in their respective countries.