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CGTMSE approves 4.35L guarantees for Rs 30K-cr loans in FY19

PTI Mumbai
Updated: 20-06-2019 21:06 IST
CGTMSE approves 4.35L guarantees for Rs 30K-cr loans in FY19

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Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) approved 4.35 lakh guarantees for an aggregate loan amount Rs 30,168 crore in FY19, registering a growth of 58 per cent compared to the previous fiscal. This is the highest ever growth recorded since its inception in the year 2000, Sidbi said in a statement.

CGTMSE is a trust set up by the government and Small Industries Development Bank of India (Sidbi). "We hope to maintain the growth momentum in the current financial year," CGTMSE Chairman Mohammad Mustafa said.

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. 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 the amount of Rs 816 crore, the statement said. The recovery out of claim settled accounts for FY19 increased to Rs 210 crore compared with the recovery of Rs 178 crore in FY18.

Mustafa said CGTMSE will be including new age fintech NBFCs and scheduled urban co-operative banks as member lending institutions. During FY19, four NBFCs and two SFBs have been onboard as member lending institutions (MLIs) of CGTMSE enabling increased credit flow to the MSE sector.

As on March 31, 2019, the total number of MLIs stood at 116.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)