Goa govt signs MoU with CGTMSE to enable collateral-free loans to MSMEs
The Goa government took steps to support micro, small, and medium enterprises (MSMEs) and promote digital payments in government departments by signing three memorandums of understanding (MoUs) on Thursday. Chief Minister Pramod Sawant announced the news on Twitter, highlighting the fulfilment of two budgetary promises.
One of the MoUs signed was with the Credit Guarantee Fund Trust for Micro and Small Enterprises. This partnership aims to administer the Goa Credit Guarantee Scheme, also known as the Mukhyamantri Saral Udyog Sahayya Yojana, within the state. The scheme is designed to provide support and financial assistance to MSMEs in Goa.
By collaborating with the Credit Guarantee Fund Trust, the Goa government intends to strengthen the MSME sector by offering credit guarantees, which can enable easier access to finance for small businesses. This initiative aligns with the government’s commitment to foster the growth and development of MSMEs, which are crucial for the state’s economy.
The specific details and provisions of the Goa Credit Guarantee Scheme, including eligibility criteria and benefits for MSMEs, will likely be outlined in the agreement signed with the Credit Guarantee Fund Trust.
The Goa government’s focus on driving digitized governance and promoting digital payments within government departments signifies its commitment to improving efficiency, transparency, and convenience in administrative processes. This move can contribute to the overall development and modernization of governance practices in the state.
For more comprehensive information on the Goa Credit Guarantee Scheme and its implementation, it is advisable to refer to official announcements from the Goa government or trusted news sources that provide updates on the progress and impact of these initiatives.
In its budget for the fiscal year 2023-2024, the state government of Goa had announced the introduction of the Goa Credit Guarantee Scheme. As part of this scheme, the government allocated Rs 10 crore to increase credit guarantee coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) up to 95 per cent.
By assigning this budgetary allocation, the Goa government aims to enhance the credit guarantee coverage provided by the CGTMSE, a central government initiative to support MSMEs. Increasing the range to 95 per cent indicates a significant step towards providing greater financial security and easier access to credit for micro and small businesses in Goa.
The specific details of the Goa Credit Guarantee Scheme, including eligibility criteria, loan amounts, and the application process, will likely be outlined in the scheme’s official documentation or subsequent announcements by the state government.
This budgetary allocation highlights the government’s commitment to strengthening the MSME sector by providing enhanced credit support and facilitating access to finance. The increase in credit guarantee coverage under the CGTMSE signifies the government’s efforts to mitigate the risks associated with lending to MSMEs, thereby encouraging financial institutions to extend loans to these businesses.
To stay informed about the implementation and progress of the Goa Credit Guarantee Scheme, it is recommended to refer to official announcements from the Goa government or reliable news sources that provide updates on the state’s initiatives for MSMEs and credit guarantee programs.The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides crucial support to micro and small enterprises (MSEs) by offering credit guarantees. The extent of the guarantee coverage varies depending on the loan amount, the category of entrepreneurs, and the geographical region.
For micro-enterprises with loans up to Rs 5 lakh, the guarantee cover available under CGTMSE is up to 85 per cent. For loans between Rs 5 lakh and Rs 5 crore, the body is up to 75 per cent. However, certain categories of entrepreneurs and specific regions have different guarantee coverage.
For women entrepreneurs, SC-ST entrepreneurs, MSEs located in aspirational districts, and ZED-certified MSEs, the guarantee cover is up to 85 per cent for loans up to Rs 5 crore. This provision aims to promote inclusivity and support underrepresented groups in entrepreneurship.
For MSEs based in the Northeast region, Jammu & Kashmir, and Ladakh, the guarantee cover limit is up to 80 per cent for loans up to Rs 50 lakh. For loans between Rs 50 lakh and Rs 5 crore, the cover is up to 75 per cent. This reflects an acknowledgement of the unique challenges faced by businesses in these regions and provides them with enhanced support.
According to data from the Ministry of Micro, Small, and Medium Enterprises (MSME), until October 20 in FY23, a total of 1,086 cases involving Rs 136.95 crore were recorded. Out of these, 121 claims involving Rs 3.49 crore were settled through CGTMSE. These statistics highlight the role of CGTMSE in providing financial security to MSEs and the positive impact it has on resolving cases and protecting lenders in case of default.
The CGTMSE scheme plays a significant role in facilitating access to credit for MSEs and encouraging lending institutions to extend financial support to these enterprises. By providing credit guarantees, the scheme reduces the risk perception for lenders and enables MSEs to secure loans on favourable terms. It serves as a vital tool in promoting entrepreneurship, fostering business growth, and driving economic development.
Understanding the specific guarantee coverage available under CGTMSE based on loan amounts, entrepreneur categories, and geographical regions can help MSEs and lenders make informed decisions and leverage the scheme effectively. Staying updated with the latest information and guidelines from the MSME Ministry and CGTMSE is crucial to benefitting the scheme’s provisions. In addition to the initiatives mentioned earlier, the Goa government’s budget allocation included Rs 10 crore for the Prime Minister’s Formalisation of the Micro Food Processing Enterprises scheme. This funding aims to support and promote micro-food processing enterprises in the state, contributing to the growth and formalization of this sector.
Furthermore, the government introduced the Chief Minister’s Kaushalya Path scheme, which focuses on skilling, re-skilling, and up-skilling local youth. This scheme emphasizes the importance of skill development and aims to enhance the employability and entrepreneurial capabilities of the youth in Goa.
Apart from these announcements, the Goa government signed two additional MoUs to drive digitalization and collaboration. One MoU was signed with Paytm, a leading digital payments company, to facilitate the adoption of digital payment methods across various government departments. This includes deploying Paytm devices such as electronic data capture (EDC) machines, point-of-sale (POS) terminals, and QR code systems. The collaboration also involves promoting the use of the Paytm app for digital transactions.
The other MoU was signed with the Institute of Chartered Accountants to establish cooperation and collaboration in capacity building, research, policy-making assistance, consulting, and other activities. This partnership aims to leverage the expertise of the Institute of Chartered Accountants to support the government’s efforts in these areas.
These initiatives demonstrate the Goa government’s commitment to promoting digitalization, enhancing financial inclusion, and fostering collaboration with relevant institutions. The Paytm partnership and the collaboration with the Institute of Chartered Accountants are aimed at improving government services, streamlining processes, and contributing to effective policy-making.
To stay updated on the implementation and progress of these initiatives, it is advisable to refer to official announcements from the Goa government and reliable news sources.
