Hon’ble Union Minister for MSME Shri Narayan Rane, launched the “Revamped Credit
Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme” on
27.04.2023 at Mumbai. CGTMSE has been provided with an additional corpus support
of Rs. 9,000 crores in the Union Budget for FY 2023-24 to revamp the Scheme and to
provide guarantees for additional Rs. 2 lakh crores to Micro & Small Enterprises (MSEs).
Accordingly, the major revamp measures were launched and disseminated too the
lending institutions. The modifications included reduction in guaranteed fees for loans
upto Rs. 1 crore by 50%, bringing the minimum guarantee fee to the level of 0.37% pa.
only. Another major change announced was raising the ceiling for guarantee from
Rs.2 crore to Rs.5 crore and enhancing the threshold limit for claim settlement without
initiation of legal action to Rs.10 lakh.
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