CGFF to come up in next 3-4 months

CGFF to come up in next 3-4 months

The Credit Guarantee Fund for Factoring (CGFF), with the initial corpus of Rs 500 crore, is likely to be operational in the next 3-4 months.

CGFF, under the aegis of Small Industries Development Bank of India (SIDBI), will be set up as a trust.

It will provide credit guarantee to banks, financial institutions and similar companies against factoring to the MSME sector.

“Consultations in this regard will be complete in the next few days,” SIDBI Chairman and Managing Director Sushil Muhnot said.

Finance Minister P Chidambaram had said in the Budget 2013-14, “The Factoring Act 2011 has been passed by Parliament proposes to provide a corpus of Rs 500 crore to SIDBI to set up a Credit Guarantee Fund for factoring.”