Page 28 - Banking Finance December 2021

ARTICLE

Mapping Elements of MSME Ecosystem to various schemes

Schemes Human Knowledge Finance Technology Infra Markets Policy
Capital
EDC
NMCP(CLCS-TUS)
CLCSS
CGTMSE
Interest Subvention
SFURTI
MDA
ICS
PMEGP
MAS
CDP
Coir Vikas Yojna
ASPIRE
Solar Charkha
ISEC
Coir Udyami Yojna
National SC/ST Hub

Source: Ministry of MSME

As there is a mapping gap among various MSME schemes, Government of India has set up the National Credit
it is recommended that the Ministry of MSME should be the Guarantee Trustee Company (NCGTC) as a single entity to
Nodal Ministry for all interventions pertaining to the MSME house and administer different Credit Guarantee Funds.
Sector, rather than multiple schemes being run by different Currently, NCGTC, administer Credit Guarantees for Micro
Ministries for promotion of MSMEs in their respective Units, Standup India loans, Factoring, Skilling Loans,
domain. Education Loans and a proposed scheme to guarantee
Venture Debt to Startup.
Other Initiatives
A plethora of Credit Guarantee Schemes are therefore
Credit Guarantee Schemes currently in operation. Many of these directly concern
Credit Guarantees in India for MSMEs were introduced MSMEs. Most of these schemes offer individual guarantee
through the Credit Guarantee Fund Trust for Micro and where a contract is signed with the borrower. However, the
Small Enterprises (CGTMSE) in the early 2000s. Over time, CGFMU offers a portfolio guarantee which involves a
other Credit Guarantee Schemes have been introduced such contract signed with the lender and covers loans up to ?10
as Credit Guarantee Fund Trust for Low Income Units by lakh for which collateral is otherwise not required. CGTMSE,
NHB, Credit Guarantee Fund for Micro Units (CGFMU), on the other hand also offers partial credit guarantee
Credit Guarantees for Skilling Loans, Education Loans, loans coverage i.e. a loan could be partially secured by collateral
extended under Standup India, factoring, loans extended to and the un-collateralized portion could be covered under an
Scheduled Castes, etc. In addition, there are some Credit individual credit guarantee.
Guarantee Schemes being operated by the Private Sector
on a smaller scale. An analysis of various Credit Guarantee Schemes suggests

28 | 2021 | DECEMBER | BANKING FINANCE