ANNUAL REPORT - Dc Msme

Annual Report
2010-11
Chapter IV - DC (MSME)
collateral/third party guarantees. The
Scheme is being operated through the
Credit Guarantee Fund Trust for Micro
and Small Enterprises (CGTMSE) set
up jointly by the Government of India
and Small Industries Development
Bank of India (SIDBI).
4.9.2 The Scheme covers collateral free
credit facility (term loan and/ or working
capital) extended by eligible member
lending institutions (MLIs) to new and
existing micro and small enterprises up
to Rs. 100 lakh per borrowing unit. The
guarantee cover provided is up to
75% of the credit facility up to Rs.50
lakh with an incremental guarantee
of 50% of the credit facility above
Rs.50 lakh and up to Rs.100 lakh (85%
for loans up to Rs. 5 lakh provided
to micro enterprises, 80% for MSEs
owned/ operated by women and all
loans to NER). One time guarantee
fee of 1.5% of the credit facility
sanctioned (0.75% for NER including
Sikkim) and Annual Service Fee of
0.75% is collected from the MLIs.
4.9.3 As on 31st December 2010,
there were 115 eligible lending
institutions registered as MLIs of
the Trust comprising of 27 Public
82
Sector Banks, 17 Private Sector
Banks, 61 Regional Rural Banks
(RRBs), 2 foreign banks and 8 other
Institutions viz., National Small
Industries Corporation (NSIC),
North Eastern Development
Finance Corporation Ltd. (NEDFi),
Delhi Financial Corporation, Kerala
Financial Corporation, Tamilnadu
Industrial Investment Corporation
Ltd., Jammu & Kashmir Development
Finance Corporation Ltd. (JKDFC),
Export Import Bank of India
(EXIM Bank) and Small Industries
Development Bank of India (SIDBI).
Cumulatively 4,76,452 proposals
have been approved for guarantee
cover for a total sanctioned loan
amount of Rs. 20,109.36 crore.
4.10 MICRO FINANCE
PROGRAMME
4.10.1 The Ministry has been
operating a Scheme of Micro Finance
Programme since 2003-04, which
has been tied up with the existing
Micro Credit Scheme of SIDBI. Under
the Scheme, the Government of
MSME