<p> CGTMSE, established by Government of India and Small Industries Development Bank of India, extends guarantee for loans up to Rs 50 lakh sanctioned by its member lending institutions to MSEs, both in the manufacturing and service sectors excluding retail trade.<br />Karnataka has 11 per cent share of all-India coverage under the collateral-free credit scheme for entrepreneurs in the MSEs sector. CGTMSE guaranteed 13,653 loan proposals amounting Rs 749 crores under the scheme till August 31. <br /><br />“The MSEs are facing problems in getting finance for projects owing to inability in providing collateral security or third party guarantee. Our endeavour is to lessen the problem and facilitate credit flow to MSEs in the country,” CGTMSE Chief Executive Officer O S Vinod told Deccan Herald.<br /><br />The CGS is operated through a network of banks and financial institutions called Member Lending Institutions (MLIs). As many as 97 banks and financial institutions are registered with the Trust as MLIs throughout India till August 31. In Karnataka, 36 MLIs with all-India presence have covered large number of enterprises under CGS.<br /><br />Some of the MLIs headquartered in Karnataka are Canara Bank, Corporation Bank, State Bank of Mysore, Syndicate Bank, Vijaya Bank and The Karnataka Bank Limited. <br />According to the Vinod, last couple of years witnessed sharp increase in the number of guarantees approved by CGTMSE, thus indicating growing acceptance of the scheme amongst banks and other MLIs. “An all time high of 53,708 guarantees amounting to Rs 2,199 crore were approved the financial year 2008-09. Approval has been granted for 41,168 guarantees amounting to Rs 1,883 crore in the current financial year. Cumulatively, 1,90,650 guarantees amounting to Rs 6,653 crore have been approved under the scheme as on August 31, 3009,” adds Vinod. <br /><br />To another query he said, the Trust, in association with its MLIs, industry associations and government agencies like District Industries Centre will organise awareness programmes for the benefit of the bankers and MSE entrepreneurs in Karnataka. <br /></p>
<p> CGTMSE, established by Government of India and Small Industries Development Bank of India, extends guarantee for loans up to Rs 50 lakh sanctioned by its member lending institutions to MSEs, both in the manufacturing and service sectors excluding retail trade.<br />Karnataka has 11 per cent share of all-India coverage under the collateral-free credit scheme for entrepreneurs in the MSEs sector. CGTMSE guaranteed 13,653 loan proposals amounting Rs 749 crores under the scheme till August 31. <br /><br />“The MSEs are facing problems in getting finance for projects owing to inability in providing collateral security or third party guarantee. Our endeavour is to lessen the problem and facilitate credit flow to MSEs in the country,” CGTMSE Chief Executive Officer O S Vinod told Deccan Herald.<br /><br />The CGS is operated through a network of banks and financial institutions called Member Lending Institutions (MLIs). As many as 97 banks and financial institutions are registered with the Trust as MLIs throughout India till August 31. In Karnataka, 36 MLIs with all-India presence have covered large number of enterprises under CGS.<br /><br />Some of the MLIs headquartered in Karnataka are Canara Bank, Corporation Bank, State Bank of Mysore, Syndicate Bank, Vijaya Bank and The Karnataka Bank Limited. <br />According to the Vinod, last couple of years witnessed sharp increase in the number of guarantees approved by CGTMSE, thus indicating growing acceptance of the scheme amongst banks and other MLIs. “An all time high of 53,708 guarantees amounting to Rs 2,199 crore were approved the financial year 2008-09. Approval has been granted for 41,168 guarantees amounting to Rs 1,883 crore in the current financial year. Cumulatively, 1,90,650 guarantees amounting to Rs 6,653 crore have been approved under the scheme as on August 31, 3009,” adds Vinod. <br /><br />To another query he said, the Trust, in association with its MLIs, industry associations and government agencies like District Industries Centre will organise awareness programmes for the benefit of the bankers and MSE entrepreneurs in Karnataka. <br /></p>
