Goa Unveils INR 5 Crore State Credit Guarantee Scheme for MSEs

The Goa government has officially introduced the Goa Credit Guarantee Scheme (GCGS), also known as Mukhyamantri Saral Udyog Sahayya Yojana (MSUSY), integrating it with the existing credit guarantee scheme, CGTMSE, established by the central government. Launched on January 11, 2024, the five-year initiative aims to facilitate collateral-free loans of up to INR 5 crore to micro and small enterprises (MSEs) in the state, thus diminishing the lending risk for financial institutions. A memorandum of understanding (MoU) was previously signed in July last year between the Goa government and CGTMSE to administer the GCGS.

Under the scheme, MSEs in Goa with Udyam registration can avail themselves of loans with a guarantee coverage ranging from 75-85 per cent by CGTMSE and an additional 10-20 per cent from the Goa government, leading to a total guarantee coverage of up to 95 per cent of the loans granted.

For Udyam-Registered MSEs

The Goa government has committed an initial corpus of INR 10 crore to the CGTMSE Trust for implementing the GCGS-MSUSY scheme, with the provision to extend its validity or allocate fresh funds through official notifications.

All lending members falling under CGTMSE, including scheduled commercial banks, regional rural banks, small finance banks, and cooperative banks, are eligible to participate in lending to MSEs under the scheme. Eligible entities include Udyam-registered MSEs, with specific emphasis on women entrepreneurs and SC-ST entrepreneurs-led units, MSEs in aspiration districts, ZED-certified MSEs, units led by persons with disabilities (PWD), and MSEs promoted by agniveers.

Centre’s Support To 76 Lakh MSEs

Meanwhile, the centre’s CGTMSE recently achieved a significant milestone by reaching the INR 1 lakh crore mark in loan guarantees within the first seven months (April-October) of the current fiscal year; the scheme approved INR 1.04 lakh crore guarantees throughout the entire fiscal year 2023, with a total of 11.65 lakh guarantees approved.

Cumulatively, the scheme has endorsed credit guarantees amounting to INR 5 lakh crore, supporting 76 lakh MSEs, as reported by the MSME Ministry in October of the previous year. CGTMSE was established in July 2000 with an initial allocation of INR 2,500 crore, later increased to INR 7,500 crore with an additional contribution of INR 5,000 crore from the government of India.