Record Details

LENDING TO MSE SECTOR UNDER CGTMSE SCHEME - EMERGING THREAT AND CHALLENGES FOR THE BANKERS

Sai Om Journal of Commerce & Management - National

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Title LENDING TO MSE SECTOR UNDER CGTMSE SCHEME - EMERGING THREAT AND CHALLENGES FOR THE BANKERS
 
Creator Muthaiah, Ramamoorthy
 
Subject Micro and Small Enterprises; Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE ); Non-Performing Asset (NPA); Member Lending Institutions(MLI); Credit Guarantee scheme (CGS); Guarantee fee(GF); Interest Rate Cap; Base Rate(BR); Annual S
 
Description MSEs or Micro and Small Enterprises form the backbone of an economy. In India, MSEs have been picking up pace for past few years now. Though while acknowledging the significance of small businesses, banks do hesitate in extending loans to the first generation entrepreneurs. Owing to the inability of providing adequate collateral security against loans, micro and small enterprise owners face hurdles in having access to bank credit. Taking this into account, the government introduced the Credit Guarantee Fund Scheme for MSEs  in August, 2000, wherein   an Entrepreneur  can avail loan without offering any collateral security and  third party guarantee It also targeted at lowering the hindrances to credit flow to Micro and Small Enterprises .The objective of this scheme was to reduce the problem of collateral security. Further , CGTMSE  in the current year   has  proposed  to   go for  many changes  including temporary suspension of CGTMSE scheme coverage   to some banks  due to  very high level of NPAs under CGTMSE  scheme accounts  ,reported by some of the Banks. This paper  attempts  to  study and discuss  the  various  changes  proposed by CGTMSE and  its impact  on MSE sector’s lending  and future challenges for the Bankers to extend credit  under the said scheme .
 
Publisher Sai Om Publications
 
Contributor —
 
Date 2015-12-02
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://abhinavjournal.com/journal/index.php/ISSN-2347-7563/article/view/849
 
Source Sai Om Journal of Commerce & Management: A Peer Reviewed National Journal (Online ISSN 2347-7563); Vol 2, No 11 (2015): Sai Om Journal of Commerce & Management: A Peer Reviewed National Journal (Online ISSN 2347-7563); 15-21
2347- 7563
 
Language eng
 
Relation http://abhinavjournal.com/journal/index.php/ISSN-2347-7563/article/view/849/pdf_21
 
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