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OVERVIEW FINANCIAL STATEMENTS
Enthused by Triumphs
Significant developments that took place during FY 2022-23
During the year, many policy level modifications were carried out with an aim to strengthen both demand as
well as supply side of the guarantee product. Some of the important modifications are listed below:
Increase in ceiling of guarantee coverage Microfinance Institutions (MFIs) have been
from `2 crore to `5 crore with effect from made eligible to be registered as member
April 01, 2023. lending institution under the Credit Guarantee
New guarantee fee structure has been Schemes in order to further facilitate enhanced
introduced with significant reduction in the credit to economically disadvantaged groups
fee from peak rate of 2% pa to 0.37% pa with and empowerment of poor, thus supporting
effect from April 01, 2023. balanced regional development and Rural
development.
For the first time, concept of discount was
introduced to recognize and reward better Trading activity (MSE Retail Trade and
managed MLIs. Wholesale Trade) has been aligned with other
activities in respect of the extent of coverage,
Guarantee for MSEs located in Aspirational ceiling of credit guarantee coverage and
Districts at liberal terms i.e 10% concession guarantee fee.
of guarantee fee on standard rate and
increased extent of guarantee coverage by For ease of claim settlement, the limit for
10% was introduced. waiver of legal action has been raised from
`1 lakh to `5 lakh during the year, which has
Guarantee for MSEs promoted by Agniveers been further increased to `10 lakh (effective
at liberal terms i.e 10% concession of April 01, 2023) while invoking claim by
guarantee fee on standard rate and Member Lending Institutions.
increased extent of guarantee coverage by
10% was introduced. CGTMSE took initiative to collaborate with
various State Governments for state specific
UTs of Jammu & Kashmir and Ladakh have guarantees with an aim to make Guarantee
been brough at par with North Eastern States mechanism an attractive tool to facilitate
in terms of liberal terms of Guarantee. This is credit dispensation in the respective States.
in line with the national objective of providing Under the mechanism, while CGTMSE will
boost to economic activities in the areas continue to provide guarantee coverage as
which have been traditionally remained applicable under its CGS I Scheme, additional
underserved.
guarantee coverage ranging from 10%-25%
Special benefits to ZED Certified MSEs has would be provided on behalf of the State
been introduced with lower guarantee fee Government out of the fund placed by the
by 10% and increased guarantee coverage State Government with CGTMSE. As on March
by 10%. 31, 2023, MoU has been signed with Four
With a view to support Women Entrepreneurs State Governments viz. State Government
as well as SC/ST Entrepreneurs and People of Tamil Nadu, Assam, Manipur, Meghalaya.
with Disability, concession in guarantee Further, MoU signed with State Government
fee by 10% and coverage of 85% has been of Rajasthan for reimbursement of fee for
introduced in respect of guarantee given to MSEs promoted by SC/ST Entrepreneurs
this segment of entrepreneurs. native of Rajasthan.
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