Please wait while loading..

Chairman’s Message

Dear Stakeholders,

It brings me immense pleasure to announce our performance for the FY 2021-22 through our Annual Report.

The past couple of years have been challenging due to the pandemic and navigating this period made us all the more resilient and better prepared for unforeseen circumstances. With resumption of economic activities, ease in lockdown and speedy vaccination drive, the Indian economy grew @ 8.7% in FY 2021-22.

The current operating environment remains challenging owing to geopolitical conflicts, resulting in disruption of supply chains and inflationary pressure. But we continue to be driven by our passion for promoting entrepreneurship, as we strive towards our strategic endeavors consistently. Powered by the trust of millions of aspiring entrepreneurs, we are committed to contribute to the nation by boosting enterprise creation, thus building an environment for job creators as against job seekers.

The omnipresence of the Micro and Small Enterprises (MSEs) sector makes them backbone of the Indian economy, driving the nation’s sustainable development. The vibrancy of the sector is encapsulated in the wide range of products manufactured/services, for both domestic and global markets, backed by policy support from governments/stakeholders.

In its journey of 22 years, CGTMSE, through Credit Guarantee Scheme (CGS) which serves as a credit enhancement for MSEs, has created significant impact in the MSE space. CGTMSE has four main schemes namely, Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS-I), Credit Guarantee Fund Scheme for NBFCs (CGS-II), Credit Guarantee Scheme for Subordinate Debt (CGSSD) and Credit Guarantee Scheme for PM SVANidhi (CGS-PMS).

In our endeavor to increase outreach to the underserved segments, CGTMSE introduced Co-Lending Model (CLM) guarantee Scheme for extension of credit jointly by banks and NBFCs. Extension of guarantee cover to colending by banks and NBFCs under Co- Lending Model (CLM) would result in improvement in flow of credit to MSEs thus, driving the economic growth.

CGTMSE is also collaborating with various State Governments to implement Special Credit Guarantee Scheme, backed by near 100% guarantee which will help the lending institutions to enhance credit flow to MSEs and give a push to enterprise creation in these states.

CGTMSE believes that leveraging technology is integral to its aim of providing credit enhancement through CGS to an increasing number of MSEs to enable them to set up and step up the ladder. We have upgraded the software of the platform on which banks transact for filing guarantees, thereby facilitating seamless functioning and improved operational efficiency. This will help MLIs in increasing the flow of collateral-free lending to MSEs.

We are optimistic about the future and look forward to serving MSEs in their growth journey by introducing innovative schemes to support the collateral free lending. Simultaneously, we are also focusing on improving our strategies and capabilities to give wings to the dreams of millions of entrepreneurs and support them in their endeavors.

I would like to express my gratitude to the Board members, all the lenders/MLIs and the CGTMSE team, who stood tall even in the face of adversity. I am also thankful to our stakeholders for believing in our vision, enabling us to continue our eventful and passionate journey towards nation building. Further, I warmly welcome our future associates and stakeholders to create a better tomorrow with us and promote the sustainable development of our country.

Our passion and commitment are paving our way ahead…

Sivasubramanian Ramann, IA&AS,
Chairman, CGTMSE

It gives me immense pleasure to report that CGTMSE has successfully completed two decades of dedicated service to the Indian MSE Sector by facilitating access to finance to MSE Entrepreneurs through Lending Institutions. FY 2020 will be remembered as a remarkable year for CGTMSE in terms of operational growth taking the cumulative guarantees approved under the Scheme to over 43 lakh for an aggregate loan amount of T2.2 I lakh crore. During FY 2020, guarantee coverage has increased by 52% in terms of amount and 94% in terms of number, which, I say with pride, is the highest eversince its inception.

In order to cover large number of MSEs and improve the ease of delivery, we have been bringing about continuous modifications in the product line of CGTMSE. The year gone by was no exception and many major policy changes in the credit guarantee products were introduced. The trust has leveraged technology to improve operational efficiencies which is reflected in not only in increase in business volume but also in its financial self-sustainability. CGTMSE has been able to instil confidence and encourage banks to lend more to MSEs by providing increasing guarantee cover to credit facilities extended by these institutions as well as by providing improved quality of service.

We ho pe to mai ntain th e growt h momentum in future also. CGTMSE on its part is deeply committed to pursuing this development agenda by accelerating guarantee coverage and providing the requisite stimulus for institutional lending to the MSEs. As part of its efforts to broaden the canvas of guarantee to be provided to the MSE Sector, CGTMSE has also included Scheduled Urban Co-operative Banks as Member Lending Institutions along with NBFCs, including Fin-Tech NBFCs and SFBs in the recent past. These broadening would give further impetus to entrepreneurship and flow of credit to MSEs.

I am grateful to Ministry of MSME, Govt. of India, the Reserve Bank of India, Indian Banks' Association and the Small Industries Development Bank of India for their valuable, timely and continuous support in the CGTMSE's endeavour at creating an enabling environment for the MSE sector. I would also like to express my appreciation for the co-operation extended by the MLIs as well as all partner institutions of CGTMSE for their dedicated efforts and support to upscale the operations of CGTMSE.

With regards,
Mohammad Mustafa, I.A.S.
Chairman, CGTMSE