CGTMSE Scheme Operational Guidelines PDF

PDF Name	CGTMSE Scheme Operational Guidelines
No. of Pages	9
PDF Size	0.17 MB
Language	English
Tags	Sarkari Yojana
PDF Category	Government
Source / Credits	Multiple Sources
Uploaded By	Pradeep

CGTMSE Scheme Operational Guidelines - Summary

Ministry of Housing and Urban Affairs (MoHUA), Government of India, has introduced the “PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)” scheme to help street vendors easily access credit. The PM SVANidhi scheme has several key objectives:

To provide a working capital loan of up to ₹10,000. (Vendors who repay on time or early may be eligible for a higher loan of up to ₹20,000, which is 200% of the initial loan amount.)
To promote timely repayment
To encourage digital transactions

With these goals, the scheme works to formalize street vending and create new opportunities for economic growth in this sector.

Small Industries Development Bank of India (SIDBI) will act as the Implementation Partner (IP) for MoHUA, managing the administration of the scheme. SIDBI will collaborate with various lending institutions, including Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Co-operative Banks, Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs) to help carry out the scheme.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will supervise the Credit Guarantee Scheme for PM SVANidhi. This initiative ensures that lenders focus on the viability of projects when granting credit, primarily relying on the secured assets financed by the loan. Moreover, lenders using the guarantee facility should aim to provide a complete package of credit that consists of both term loans and working capital from a single source. The Credit Guarantee Scheme (CGS) is structured to give lenders assurance that if a micro or small enterprise (MSE) with collateral-free credit cannot fulfill its repayment obligations, the Guarantee Trust will cover the lender’s loss. This coverage is available up to 50%, 75%, 80%, or 85% of the sanctioned credit facility, based on the current structure.

Purpose of the Scheme

The PM SVANidhi scheme aims to provide guarantee coverage under the Credit Guarantee Scheme for member lending institutions (MLIs), ensuring that working capital loans of up to ₹10,000 or any amount specified under PM SVANidhi can be sanctioned. The scheme also includes a Graded Guarantee Cover for loans sanctioned on a portfolio basis, managed by CGTMSE. The coverage details are as follows:

First Loss Default (Up to 5%): 100%
Second Loss (beyond 5% up to 15%): 75% of the default portfolio
Maximum guarantee coverage will be 15% of the year’s portfolio

For more information, you can download the CGTMSE Scheme Operational Guidelines in PDF format using the link provided below or access it through an alternative link. 📄

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