The Government of Assam has launched the Assam Credit Guarantee Scheme, which will securitize financing for the state’s medium and small companies.
Assam Credit Guarantee Scheme
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is jointly set up by Ministry of Micro, Small & Medium Enterprises (MSME), Government of India.
It will provide 75%-85% of the guarantee coverage for loan facilities under the Scheme, based on the borrower’s category and balance. The state government will give 25% – 15% coverage, bringing the total guarantee coverage to 100%.
In order to allow rapid industrialization and revitalise the Micro, Small, and Medium Enterprises (MSME) sector, the state government signed two Memorandums of Understanding (MoUs) with CGTMSE for the Assam Credit Guarantee Scheme and SIDBI Venture Capital for the Assam Startup Venture Capital Fund in 2022.
Chief Minister Himanta Biswa Sarma signed the agreement at an MSME conclave. The cooperation aims to provide extra guarantee coverage for loans made by lending institutions to MSMEs.
