Boost for Women-Led Enterprises: 90% Credit Guarantee Under New CGTMSE Guidelines

The CGTMSE scheme has enhanced credit guarantee coverage to 90% for women-owned micro and small enterprises. Approved by the board last week, this initiative will benefit 27 lakh women-led MSMEs, improving access to collateral-free credit. The move aligns with broader efforts to formalize MSMEs and generate employment across India.

Women-owned micro and small enterprises will benefit from enhanced credit guarantee coverage of 90 per cent under the CGTMSE scheme, Union Minister Jitan Ram Manjhi announced on Tuesday.

The revised guidelines are expected to support 27 lakh women-led MSMEs, providing better access to collateral-free credit from banks. Previously, the credit guarantee coverage was 80 per cent for these enterprises.

Manjhi highlighted the Ministry of Micro, Small and Medium Enterprises' achievements, noting that 5.07 crore MSMEs have been formalised, creating 21 crore jobs. Under the PMEGP, 26,426 new micro enterprises have been established with loan disbursements totalling Rs 3,148 crore, expected to benefit over 2.11 lakh people.

The minister also announced the establishment of 14 technology centres across India, which will operate in a public-private partnership mode, aiding local MSMEs with advanced manufacturing technologies, skill development, and business advisory services. One lakh MSMEs and 3 lakh youth are set to benefit in the next five years.

(With inputs from agencies.)