The Credit Guarantee Scheme for Small and Medium Enterprises (MSMEs) has been extended till March 31, 2022 by the Government in financial crisis.
The plan was approved by the federal government on June 1, 2020, at a time when curfews were being implemented across the country, such as the sudden cessation of operations and the unavailability of workers as such units faced an existential crisis.
The project was scheduled to run from June 24, 2020 to March 31, 2021. However after receiving numerous requests from shareholders and beneficiaries, the government extended it to six months till September 30, 2021.
Now amid continuing demands from the MSME sector, the government has extended it further till the end of this financial year.
In a statement issued by the MSME Ministry, the government initially extended the scheme to open avenues for financial assistance to the oppressed sections, keeping in mind the repeated requests from stakeholders.
The main purpose of the scheme is to provide credit guarantee to depressed MSMEs.
90 per cent of the loan guarantee comes through this scheme and the remaining 10 per cent is to be provided by the advertiser.