The scheme is being operated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) set up jointly by the Government and SIDBI.

The scheme covers collateral free credit facility (term loan and/ or working capital) extended by eligible lending institutions to new and existing micro and small enterprises up to Rs.. 100 lakh per borrowing unit.

The guarantee cover provided is up to 75% of the credit facility up to Rs..50 lakh with an incremental guarantee of 50% of the credit facility above Rs..50 lakh and up to Rs..100 lakh (85% for loans up to Rs.. 5 lakh provided to micro enterprises, 80% for MSEs owned/ operated by women and all loans to NER).

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One time guarantee fee of 1.5% of the credit facility sanctioned (0.75% for NER including Sikkim) and Annual Service Fee of 0.75% is collected from Member Lending Institutions (MLIs). The corpus of CGTMSE is contributed by the Government and SIDBI in the ratio of 4:1. At present the corpus is around Rs..3300 crore which enables substantial enhancement in the credit flow to MSEs by leveraging it many times over.  

A total of 125 Member Lending Institutions comprising of 26 Public Sector banks, 18 Private Sector Banks, 68 Regional Rural Banks (RRBs), 4 foreign banks and 9 other Financial Institutions have been registered which allows a wide coverage across country.

The scheme has helped around 7 lakh entrepreneurs by providing guarantee & enabling them loans worth more than Rs.. 31 thousand crore. Major features of the scheme covers

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• Funding Modernization
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