Credit Guarantee Scheme Revamped Further, PM Praises

Prime Minister Narendra Modi on Monday has said that revamping of credit guarantee scheme is a part of the government's efforts to strengthen the micro, small and medium enterprises (MSME) sector.

Notably, the central government has further revamped the credit guarantee scheme to increase the flow of credit to MSEs. 

Annual guarantee fees have been reduced to as low as 0.37 per cent and the limit on the ceiling for guarantees enhanced from Rs  2 crore to Rs 5 crore.

Union MSME Minister Narayan Rane took to Twitter and wrote, "As part of our continuous efforts to strengthen the MSE Sector, the credit guarantee scheme has been further revamped to increase the flow of credit to MSEs."

Rane added that annual guarantee fees have been reduced to as low as 0.37 and the ceiling for guarantees enhanced to Rs 5 crore from Rs 2 crore.

Responding to the tweet thread by the Union Minister, Prime Minister Modi tweeted, "This is a part of our government's efforts to strengthen the MSME sector."

Meanwhile, in India an estimated 5.9 per cent of the gross value added (GVA) in the Indian economy— Rs 10.7 lakh crore is locked up in delayed payments from buyers to MSME suppliers.