Public Sector Banks To Give 100 Crore Loan to MSME, Collateral Free Without Guarantee

Finance Minister Nirmala Sitharaman announced a new credit guarantee scheme for MSMEs, offering collateral-free loans up to Rs 100 crore without any Guarantee like CGTMSE. This scheme may help the MSME borrowers to come out of the difficulties faced by MSMEs in obtaining term loans for machinery and expansion. Madam Sitharaman highlighted that banks will implement their own credit assessment models, eliminating the need for third-party guarantees. Also Read – Public Sector Banks Are Given Additional MSME Targets for FY 2024-25

Union Finance and Corporate Minister, Nirmala Sitharaman  further said that the Ministry of Micro, Small and Medium Enterprises (MSMEs) will get collateral-free loans of upto Rs 100 crore through a new credit assessment model by PSU banks.

Public Sector banks will develop a new credit assessment model or Rating Model for the credit assessment which will help the MSMEs to get the collateral free loan up to Rs 100 Crore Without Guarantee i.e. without CGTMSE, get the news link here.