Chennai: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), a trust set up by Government of India and Small Industries Development Bank of India (SIDBI), crossed a significant milestone in FY19 by approving 4.35 lakh guarantees for an aggregate loan amount of Rs 30,168 crore recording a growth of 58 per cent compared with the previous fiscal. This is the highest every growth recorded since its inception in the year 2000. According to a press release issued by CGTMSE, the number of guarantees approved during FY19 increased to 4.36 lakh from 2.63 lakh in FY18 recording an increase of 66 per cent. Cumulatively, as on March 31, 2019, a total of 34.60 lakh guarantees have been accorded approvals for Rs 1.76 lakh crore. The operational income of the trust increased to Rs 936 crore in FY19 surpassing the claim settled amount of Rs 816 crore. The recovery out of claim settled accounts for FY19 increased to Rs 210 crore compared with recovery of Rs 178 crore in FY18.
Chairman of CGTMSE, Mohammad Mustafa said, ‘We hope to maintain the growth momentum in the current financial year. CGTMSE will be including new age fintech Non-Banking Financial Companies (NBFCs) and Scheduled Urban Cooperative Banks as member lending institutions. We also want to register and onboard more mainline NBFCs and Small Finance Banks. Besides that, we propose to undertake a re-engineering exercise to enhance internal system and processes. These would give further impetus to entrepreneurship and flow of credit to MSEs.’