In a major push for women entrepreneurs, women-led Micro, Small and Medium Enterprises (MSMEs) will now be able to access up to 90% of loans without any guarantee under the CGTMSE scheme. This new guideline was recently approved by the Board of Directors of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The move is expected to benefit around 27 lakh women-led businesses across India, providing them with greater financial access.
Increased Credit for Women Entrepreneurs
Before this change, women-owned MSMEs could only get 85% loan coverage under the CGTMSE scheme. The new guideline increases this to 90%, offering a significant boost to women-led enterprises looking to expand their operations or start new ventures. This step is seen as a part of the government’s commitment to empower women entrepreneurs and promote gender equality in business.
Union Minister Jitan Ram Manjhi highlighted this change during a press conference, stating that it is a major step towards enhancing financial access for women. With more loans becoming available without the need for guarantees, women entrepreneurs will now find it easier to secure funding from banks.
21 Crore Jobs Generated by MSMEs
The Minister also shared the impressive achievements of the MSME sector. Over 5.07 crore MSMEs have now been organized across India, leading to the creation of 21 crore jobs. This shows the massive impact MSMEs have on the Indian economy, particularly in generating employment.
He further mentioned that to mark the completion of one year of ‘PM Vishwakarma Yojana’, a grand program will be held in Wardha, Maharashtra, on September 20, with Prime Minister Narendra Modi expected to attend.
Expansion of Technology Centers for MSMEs
Another important development is the establishment of 14 new technology centers across India. These centers will be located in cities such as Nagpur, Pune, and Bokaro, with an investment of Rs 2,800 crore. These technology hubs will be developed under a public-private partnership model and are designed to give local MSMEs access to advanced manufacturing technologies, skill development, and business advisory services.
These centers aim to provide technological support to one lakh MSMEs, while also offering training to three lakh youth over the next five years. This initiative is expected to significantly improve the productivity and competitiveness of small enterprises in India.
Pradhan Mantri Employment Generation Program
In the last 100 days alone, 26,426 new micro-enterprises have been set up under the Pradhan Mantri Employment Generation Program (PMEGP). With a loan disbursement of Rs 3,148 crore, this initiative has created income opportunities for 2.11 lakh people, promoting both rural and urban entrepreneurship.
