you are here: HomeNewsBusiness

Credit guarantee fund trust approves 6.19 lakh loan applications from small businesses in FY21

CGTMSE is a trust which provides collateral-free loans to MSMEs. It provides a guarantee to the lending institutions up to a certain limit for all lending done by them to the enterprises in the MSME sector.

March 22, 2021 / 08:18 PM IST
Representative image

Representative image

The credit guarantee fund trust for micro and small enterprises (CGTMSE), which extends collateral-free credit guarantee scheme for small businesses, has approved 6.19 lakh loans for an amount of Rs 31,349.39 crore in the FY21 so far as per the MSME Dashboard.

The number of applications approved by CGTMSE in FY20 was the highest since FY15, the data reveals. While 8,38,947 loan applications were approved in FY20, in FY21, 6,19,687 applications were approved.

The data reveals that so far twelve public sector banks have approved loans worth Rs 18,000 crore whereas eighteen private banks have approved loans worth Rs 4,556 crore. Other lending institutions include the regional rural banks, small finance banks, foreign banks and scheduled cooperative banks.

Among the member lending institutions, Bajaj Finance has led the score by approving the highest number of loans at 1,95,853 followed by Union Bank of India at 90,969 loan applications and Canara Bank at 58,495 loan applications.

Among the leading states, which saw the highest number of claims settled in FY21, were Uttar Pradesh at 4,258 claims followed by Maharashtra at 3,088 and Tamil Nadu at 1,600 claims settled. 

Close

CGTMSE is a trust which provides collateral-free loans to MSMEs. It was established jointly by the Ministry of Micro, Small, and Medium Enterprises and Small Industries Development Bank of India in August 2000.

CGTMSE provides a guarantee to the lending institutions up to a certain limit for all lending done by them to the enterprises in the MSME sector.

As per a recent written parliamentary response given by MSME Minister Nitin Gadkari, banks have given a guarantee approval to 67,171 loan accounts of women entrepreneurs for an amount of Rs 3,366.63 crore in the current financial year as of December 12, 2020.
Shreeja Singh
first published: Mar 22, 2021 07:01 pm

stay updated

Get Daily News on your Browser
Sections