Under the Credit Guarantee Scheme (CGS) of the Centre, loans totalling 53,86,739 were approved during the first quarter of the current financial year (2021-22). The period witnessed a surge in the second wave of the Coronavirus pandemic, which severely hit jobs and businesses, especially small ones.
The scheme, which is implemented by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), cleared loans worth Rs 2,72,007 crore between April-June period of 2021-22, according to the information provided by the Ministry of Micro, Small and Medium Enterprises.
CGTMSE reported that guarantee approvals with respect to banks and non-banking financial companies (NBFCs) were Rs 6,693 crore and Rs 6,603 crore respectively during first quarter of 2021-22 as against Rs 6,041 crore and Rs 2,934 crore respectively during the corresponding period of the previous fiscal (2020-21).
All new and existing micro and small enterprises engaged in manufacturing or services including trading activity are eligible to be covered under CGS.