Enhanced Credit Guarantee to Benefit 2.7 Million Women-Led MSMEs: Manjhi

Women-owned micro and small enterprises (MSMEs) will now receive enhanced credit guarantee coverage of 90% under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, Union Minister Jitan Ram Manjhi announced on Tuesday. The decision, recently approved by the CGTMSE Board, is expected to benefit 2.7 million women-led MSMEs, significantly improving their access to collateral-free credit from banks.

Prior to this, women-owned units were eligible for 85% credit guarantee coverage. The increase to 90% is seen as a crucial step in empowering women entrepreneurs by enabling better access to financial support without the need for collateral. Manjhi highlighted the positive impact, stating that “2.7 million women-led MSMEs are expected to benefit from this initiative.”

Speaking on the achievements of the Ministry of Micro, Small and Medium Enterprises (MSME) within the first 100 days of the Narendra Modi-led government’s return to power, Manjhi also announced a grand event in Wardha, Maharashtra, on September 20 to mark one year of the PM Vishwakarma Scheme, which will likely be attended by the Prime Minister.

He further shared that 50.7 million MSMEs have now been formalized, generating 210 million jobs. Under the Prime Minister Employment Generation Programme (PMEGP), 26,426 new micro enterprises have been established in the last 100 days, with loan disbursements totaling ₹3,148 crore. This initiative is expected to create employment for over 211,000 people, with a focus on enhancing both rural and urban entrepreneurship.

Manjhi also revealed plans for the establishment of 14 technology centres across India, including in Nagpur, Pune, and Bokaro, with an investment of ₹2,800 crore. These centres, to be set up in a public-private-partnership (PPP) mode, will provide local MSMEs access to advanced manufacturing technologies, skill development, and business advisory services. Over the next five years, 10 million MSMEs are expected to benefit from technology access, and 300,000 youth will be trained at these centers.

Disclaimer: The information provided in this article is based on updates and reports gathered from various sources. Every effort has been made to ensure accuracy and reliability. We encourage readers to verify the details independently before making any decisions.