Page 33 - Banking Finance October 2024

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Financial Literacy Programs: The bank conducts coverage up to 85% for various categories of loan
workshops and seminars to educate MSMEs on through Credit Guarantee Fund Trust for Micro and
financial management, loan options, and digital Small Enterprises (CGTMSE) under Credit Guarantee
banking solutions. Scheme. By providing guarantees to banks, this
Dedicated Relationship Managers: Indian Bank scheme encourages lending to MSMEs, reducing the
risk for lenders. A small-scale manufacturer can avail
assigns experienced relationship managers to
of a loan with the CGTMSE guarantee, even with
MSMEs, providing personalized guidance and support
throughout their growth journey. limited collateral.
Government e-Marketplace (GeM): This online
Government Initiatives platform facilitates public procurement from MSMEs,
Pradhan Mantri Mudra Yojana (PMMY): This providing them with access to a wider market.
scheme has been instrumental in providing collateral- CHAMPIONS Portal: It is an ICT-driven Control
free loans to MSMEs, especially in the micro- Room and Management Information System focused
enterprise sector and loan upto Rs. 10.00 Lakhs can on enhancing output and national strength through
be granted. For example, a small tea stall owner can modern processes. It aims to help Indian MSMEs
avail of a Mudra loan to purchase additional become National and Global CHAMPIONS by
equipment or expand the seating area. addressing their issues and providing guidance,
Stand-Up India Scheme: Specifically targeting support, and assistance along the way.
women and SC/ST entrepreneurs, this scheme offers MSME Samadhaan Portal: Launched to address
loans for setting up new enterprises. A woman delayed payments, a chronic issue for small
entrepreneur looking to start a small manufacturing businesses.
unit can benefit from this scheme.
Recognizing the sector's importance, the Indian
Credit Guarantee Fund Trust for Micro and government has launched several initiatives to support
Small Enterprises (CGTMSE): Collateral free loan MSMEs. The 'Make in India' campaign, for example,
up to a limit of Rs. 500 lakh (w.e.f. 01.04.2023) to has given a significant boost to manufacturing MSMEs
MSEs (Micro Small Enterprises) with guarantee by encouraging domestic production and improving
ease of doing business.
Another game-changing initiative is the Emergency
Credit Line Guarantee Scheme (ECLGS), introduced
during the COVID-19 pandemic. This scheme
provided much-needed liquidity to MSMEs, helping
them weather the economic storm. As of March 2023,
over 1.19 crore MSMEs had benefited from this
scheme, with sanctions exceeding Rs. 3.2 lakh crore.
The government's focus on 'Vocal for Local' and
'Atmanirbhar Bharat' initiatives has given a
significant boost to the MSME sector," notes a report
from Invest India.
Innovative solutions are emerging. For example, the
Trade Receivables Discounting System (TReDS)
platform is revolutionizing MSME financing. This
digital platform allows MSMEs to auction their trade

30 | 2024 | OCTOBER | BANKING FINANCE