CGTMSE approves 4.35 lakh guarantees for Rs 30K-cr loans in FY19, registers highest-ever growth of 58%

Mumbai: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) approved 4.35 lakh guarantees for an aggregate loan amount Rs 30,168 crore in FY19, registering a growth of 58 percent compared to the previous fiscal. This is the highest-ever growth recorded since its inception in the year 2000, Sidbi said in a statement.

CGTMSE is a trust set up by the government and Small Industries Development Bank of India (Sidbi). "We hope to maintain the growth momentum in the current financial year," CGTMSE Chairman Mohammad Mustafa said.

The number of guarantees approved during FY19 increased to 4.36 lakh from 2.63 lakh in FY18 recording an increase of 66 percent.

 CGTMSE approves 4.35 lakh guarantees for Rs 30K-cr loans in FY19, registers highest-ever growth of 58%

Representational image. Reuters.

As on 31 March 2019, a total of 34.60 lakh guarantees have been accorded approvals for Rs 1.76 lakh crore. The operational income of the trust increased to Rs 936 crore in FY19 surpassing the claim settled amount of Rs 816 crore, the statement said.

The recovery out of claim settled accounts for FY19 increased to Rs 210 crore compared with the recovery of Rs 178 crore in FY18.

Mustafa said CGTMSE will be including new age fintech NBFCs and scheduled urban co-operative banks as member lending institutions.

During FY19, four NBFCs and two SFBs have been onboarded as member lending institutions (MLIs) of CGTMSE enabling increased credit flow to the MSE sector.

As on 31 March 2019, the total number of MLIs stood at 116.

Updated Date: Jun 21, 2019 09:26:40 IST