The promise held by MSEs in terms of driving the progress of the country and their importance for balanced economic development is widely acknowledged. However, the sector by virtue of its size, diversity and geographical spread, also necessitates a robust supporting framework to ensure that startups turn to profitable enterprises.

Availability of collaterals is one of the challenges faced by entrepreneurs in the MSE sector, especially first generation entrepreneurs.  To facilitate collateral free lending to the sector, the Government of India and Small Industries Development Bank of India together set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).                                                                       

During its decade long service to the MSE sector, CGTMSE has grown in scale and size to enable flow of institutional credit in greater measure to the sector. Over 

7.9 lakh guarantees for an amount of  Rs.37,000 crore have been approved by the Trust as on March 31, 2012. With the active support of the Government of India, RBI, SIDBI, its Member Lending Institutions and other stakeholders, CGTMSE is committed to facilitate collateral free credit to the MSE sector across the country and work diligently towards achievement of the goals of financial inclusion.