Question
What is the purpose of the Memorandum of Association
between Udyam and Credit Guarantee Fund Trust for Micro and Small Enterprises?Solution
The Ministry of MSME announced the signing of a Memorandum of Association between Udyam and Credit Guarantee Fund Trust for Micro and Small Enterprises to share data of the registered enterprises on Udyam with the government’s collateral-free loan scheme for micro and small enterprises (MSEs).This collaboration is sought to enable more MSMEs to avail the benefits under the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE). Both platforms will share the data with each other using API (Application Programming Interface) integration, which is a connection between two or more applications that allow systems to exchange data sources. This will allow the CGT Fund access to the data of MSEs availing the CGT scheme facility across the enterprise and social categories.
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