Under the major revamps been done under CGTMSE Scheme by

Solution

The Ministry of MSME  has launched the revamped CGTMSE Scheme. CGTMSE has been provided with an additional corpus support of ₹9,000 crore in the Union Budget for FY 2023-24 to revamp its Scheme to provide a guarantee for an additional ₹2 lakh crore to Micro & Small Enterprises.   Accordingly, the major revamp measures were launched and disseminated to the lending institutions. The modifications included a reduction in guarantee fees for loans upto ₹1 crore by 50% bringing the minimum guarantee fee to the level of 0.37% pa only.     Another major change announced was raising of ceiling for guarantee from ₹2 crore to ₹ 5 crore and enhancing the threshold limit for claim settlement without initiation of legal action to ₹10 lakh.