Credit Guarantee for Small Businesses to Increase to ₹5 Lakh Crore

 

The government has set a target to increase the credit guarantee for micro and small enterprises to ₹5 lakh crore over the next two years through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. This initiative aims to provide enhanced financial support to micro and small businesses, facilitating their growth and stability.

Additional Secretary and Development Commissioner (Micro, Small and Medium Enterprises), Rajneesh, highlighted that in the past two years alone, the scheme has provided credit guarantees worth ₹4 lakh crore. Speaking at an event on Tuesday, Rajneesh stated that over the last 22 years, a total of ₹2.6 lakh crore in credit guarantees has been issued under the CGTMSE scheme.

The government’s plan reflects a significant increase in support for the MSME sector, which has been expanded in scope over recent years to include a broader range of activities, providing a critical boost to small businesses across the country. The initiative is expected to help bridge the financial gap and support the sector's recovery and growth.