CGTMSE guarantee coverage increases for women-run MSEs to 90%. The MSME ministry is focusing on providing equal support to the women-led MSEs. A lot of women are leading the different segments of the corporate world. A woman running MSEs faces different types of problems that need to be solved. Majority of the time a woman doesn’t have collateral to show during the loan approval. While many institutes don’t believe in them for the timely return of the money taken. However, the government is solving the issue by providing higher credit guarantee coverage under a collateral-free loan scheme.
Women In MSEs Will Get 90% Coverage Under CGTMSE Scheme
The government is celebrating 100 days of achievements of the ministry by increasing the credit guarantees for women MSEs to 90%. It was earlier 85% for loans up to Rs. 2 Crores. It further increased to 85% guarantee for loans up to Rs. 5 crores. The ministry in Sep 2024 now increased the percentage of guarantee to 90%. Apart from that, it will provide other major benefits as well which include the provision to reduce the annual guarantee fee. Thus, it will be an ad on advantage for the women looking to raise loans for their MSEs. It will make the credit process more easy and accessible.
The ministry estimates that more than 27 lakh women MSEs will receive the benefit. The government is increasing the credit guarantee amount every financial year. It is currently Rs. 2 Lakhs crore in FY 24 which is double from the previous financial year. It was Rs. 1.04 Lakhs crore in FY 23 followed by Rs. 56,172 crore in FY22. These schemes will help the women-led MSMEs. However, the mere launching of these schemes will not benefit, and the ministry has to take steps to aware more women about these benefits. Thus, they are running campaigns to aware more women encouraging them to register for the schemes and benefits.
These campaigns are known as the Yashasvini Campaign. It showed massive results from its first campaign that took place in Jaipur. It leads to more than 4,000 Udhyam and UAP registrations attending it. Another campaign was in Ranchi, Jharkhand where women’s empowerment was visible. A total of 200 women entrepreneurs entered the event. As the MSMEs are getting more benefits from the ministry, it is moving towards an increased number of registrations. From 1.06 crore registrations in 2023, the number increased to Rs. 5.07 crore registrations in 2024. PM Modi also focuses on creating more employment opportunities for the people through new MSEs.