With a view to allay the trade finance woes of micro, small and medium enterprises(M.S.M.E.), the Union Government has planned to more than double the credit guarantee up to Rs.50,000 crore for 2018-19 under the Credit Guarantee Trust Fund For Micro and Small Enterprises Scheme(CGTMSE) set up by the MSME Ministry.
To ensure credit availability to MSME’s, the government is also planning to discuss the promotion of FinTech Companies, with the RBI. The idea behind this is that Fintech companies can reach out to M.S.M.E.’s much better than scheduled and commercial banks.
A.K. Panda, M.S.M.E. Secretary has said, ” We have taken some decisions, we are allowing NBFCs (non-banking financial companies) partial collateral and this year, unlike previous years where, from fund we used to guarantee a credit flow of Rs 19,000-20,000 crore every year for last three years, we plan to cross Rs 40,000 crore, it may touch Rs 50,000 crore”.
Mr. Panda also believes that the time has come for stakeholders like NBFC’s, MFI’s, Fintech Companies and International Trade Associations to come together and give a push to M.S.M.E.’s.
Source: smetimes.in
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