CGTMSE: MSE loans of 6 lakhs approved under the SIDBI credit program; Bajaj Finance, Union Bank’s main lenders
Credit and financing for MSMEs: The Micro and Small Business Credit Guarantee Fund (CGTMSE), which manages the unsecured credit guarantee program for MSEs, has so far approved 5.99 lakh of loans amounting to 30,216.62 Rupee crore in FY21, according to the latest data from the MSME Department’s MSME Dashboard. Among the member credit institutions, Bajaj Finance led the count by approving the largest number of loans – 1,95,855 for an amount of Rs 4,051.31 crore followed by Union Bank of India approve 84,951 loans involving Rs 2,655.80 crore, Canara Bank approving 57,875 loans in the amount of Rs 3,607.87 crore, National Bank of Punjab approving 48,970 loans involving Rs 1,743.89 crore etc.
Importantly, according to data from the February Bulletin of the Reserve Bank of India, the MSME sector accounted for a share of about 18 percent of total credit to industry and about 5 percent of total non-food credit provided by the government. commercial banks in November 2020. The sector’s gross bank credit deployment in December 2020 increased 6.6% to Rs 11.31 lakh crore, from Rs 10.61 lakh crore during the period last year.
Under the CGTMSE program, which provides a credit guarantee to financial institutions to provide unsecured loans to small businesses, the loan disbursement limit has been increased from Rs 1 crore to Rs 2 crore, the former minister of finance said. MSME Giriraj Singh in February 2019, according to a statement from the ministry. In addition, the diet corpus has been improved from Rs 2.5 lakh crore to Rs 7.5 lakh crore rupees. In FY20, 8,388,947 loan requests were approved compared to 4,35,520 during FY19. The number of applications approved by CGTMSE in FY20 was also the highest of the previous five fiscal years, according to data from the MSME Ministry.
It is important to note that as of December 12, 2020, the banks had granted guarantee approval to 67,171 loan accounts of women entrepreneurs in the amount of Rs 3,366.63 crore during the current fiscal year, according to data shared by MSME Minister Nitin Gadkari in a written response to a question in the Rajya Sabha.