LOAN GUARANTEE LIMIT FOR MSEs

The eligible loan limit for micro and small enterprises (MSEs) under the credit guarantee scheme, has been raised from Rs. 25 lakh to Rs. 50 lakh. Significantly, all MSEs operated and / or owned by women will get guarantee covers up to 80% of their credit off take from banks and financial institutions. The higher guarantee limit has also been extended to those micro enterprises, which will take loans up to limit of Rs. 5 lakh. Barring these two listed categories, over MSEs will get the guarantee coverage under the scheme up to 75 % of their borrowing. However, this facility would be enjoyed by those servicing units, which are related to the industrial activities. But not by those which are involved in trading and other non manufacturing activities