Question
Which of the following is one of important objective
behind the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) ?Solution
The Credit Guarantee Fund Scheme (CGTMSE) was established to provide guarantees to financial institutions that extend credit to MSMEs. This enables MSMEs to access loans without needing to provide collateral, which is often a barrier for small businesses. The primary goal of the CGTMSE is to enhance credit flow to the MSME sector by minimizing the risks faced by lenders, which in turn boosts working capital availability for MSMEs.
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