Credit Guarantee Fund Trust for Micro and Small Enterprises | Microfinance | Microcredit
CGTMSE helps move away from collateral-based loans
The Indian Government established the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGFTMSE) in order to provide lenders with partial guarantees on loans they make to borrowers. In doing so they provide sufficient assurance for the lenders to make the loans without collateral and instead focus on the viability of the project instead.
According to Microcapital.org, “CGTMSE was established in 2000 and, over nine years, has approved 150,034 applications which demanded USD 968.1 million in guarantee payments to lenders. In actuality, guarantees worth USD 800.7 million were given to 48 lending organizations to provide 121,229 loans over the nine-year span. 43 percent of this sum was paid in 2008 alone. “
These sort of insitutions make you realize how truly complex the micro-lending space is and how many players must be involved in order to ensure that the entire chain functions. For example, one of the effects of the CGTMSE is that it actually encourages people to borrow multiple times from the same lender since the lender is willing to do so due to the partial guarantees. This helps with the administrative practicality of keeping track of all the debtors out there.
The full article can be read here.
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9 Comments on “CGTMSE helps move away from collateral-based loans”
Dear Sir, I would like to about the scheme in details. like
what is the criteria, eligibility, Terms & conditions. Is there any provison to ask to the banker to forword the loan case to CGTSME Department.
As the bankers are not taking any intrest to do so. in this case what to do ?
Sir,Please advise the organisation/institutions though which the application under the scheme is to be sponsored.
Dear Sir, I would like to about the scheme in details. like
what is the criteria, eligibility, Terms & conditions. Is there any provison to ask to the banker to forword the loan case to CGTSME Department.
As the bankers are not taking any intrest to do so. in this case what to do ?
Dear Sir ,pls clarify about the eligibility conditions for pmegp sponsered Mfg units which are having a limit of Rs 25 lacs ,here the registeration of SSi is not required as per PMEGP Policy guidlines ,and unit is to be established in Rural area as sanctioned by the DCI ,but the Chandigarh periphery ACT does not allow to have more Manfacturing units in the periphery of the Tricity in area & around 16 kms and my unit is in the same limits as it recognised as RuralArea by DIC MOHALI, which allows Mfg units upto the cost of Rs 25 lacs without any SSI registeration as allowed under the PMEGP POLICY . But the bank has asked for the SSiI registeration as a stipulation in the agreement of loan for my case which is being covered under CGTSME now pls clear my doubt do the CGTSME provide covers to such types of cases which are allowed by local boy to go operational without SSI regiteration and avaail all benefits given by Govt SCHEMES such as PMEGP which allows the unit .waiting for your response. PLs clear are the MLI are instructed to give loans under CGTSME if same are not SSI registered but given clearence under different SCHEMES as PMEGP . pls advise the proceeding to avail the same under your Cgtsme……
dear sir,i would like to about the schemeDear Sir, I would like to about the scheme in details. like
what is the criteria, eligibility, Terms & conditions. Is there any provison to ask to the banker to forword the loan case to CGTSME Department.
As the bankers are not taking any intrest to do so. in this case what to do ?
10 years lease new hotel can be eligible to get the benefits of CGTSME under woman enterprising scheme
i am a business man ,in provisions. can i get this benifit
i am a business man, in food production and i want to take lone in this schem but the banker are not ready for it what to do about this
Dear Sir,
we are a team of Software, Hardware and Net working Engineer and working through North Bengal and Sikkim.Our main clients are Air Force Station Bagdogra, N.F.Rail and Defense.
We are having a project report of about 8Lacs ifor both Block Capital as well as working Capital.
please guide us to proceed to secure the loans from the bank at Siliguri, Dt. Darjeeling, PASCHIM BENGAL. WE ARE IN HURRY because we want to jump in a bigger scale.