Women-led MSMEs to Receive Enhanced Credit Guarantee Coverage

Women-owned micro and small enterprises will now receive a 90% credit guarantee coverage under the CGTMSE scheme, as approved by the board last week, announced Union Minister Jitan Ram Manjhi. This policy shift aims to bolster access to collateral-free credit for 27 lakh women-led MSMEs, enhancing rural and urban entrepreneurship.

In a significant policy shift, women-owned micro and small enterprises will benefit from an enhanced credit guarantee coverage of 90 percent under the CGTMSE scheme. Union Minister Jitan Ram Manjhi announced the approval of new guidelines by the board last week.

This decision is a major step forward in facilitating access to collateral-free credit from banks, specifically benefiting 27 lakh women-led MSMEs. Previously, these units were eligible for 85 percent coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Manjhi highlighted that this initiative aligns with the broader achievements of the Ministry of Micro, Small and Medium Enterprises within the first 100 days of the Narendra Modi-led government's second term. He announced the establishment of 14 new technology centers across India, providing advanced manufacturing technologies, skill development, and business advisory services to local MSMEs.

(With inputs from agencies.)