Editor
GUWAHATI: In a significant move to support micro and small enterprises (MSEs) in the state, the Assam government, in collaboration with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), has launched the Assam Credit Guarantee Scheme (ACGS). This scheme aims to provide financial assistance and guarantee coverage to MSEs operating in Assam.
Under the ACGS, eligible MSEs can avail credit facilities with a guarantee coverage of up to 100%. The CGTMSE will provide 75% to 85% of the guarantee coverage, depending on the category of the borrower, while the remaining 25% to 15% will be covered by the Government of Assam. This ensures that MSEs have a strong financial backing to support their business ventures.
Claims under the scheme will be settled by the respective Member Lending Institutions (MLIs) of CGTMSE, up to a maximum of 10% of the Non-Performing Asset (NPA) level of the portfolio. In cases where the NPA level exceeds this limit, CGTMSE will honor its share of 75% to 85% guarantee coverage.
The ACGS has been in effect since April 1, 2023, and all existing MLIs are eligible to participate in the scheme. The terms and conditions of the Credit Guarantee Schemes (CGS-I for banks and CGS-II for Non-Banking Financial Companies) will be applicable to the ACGS, with necessary adjustments.
This initiative by the Assam government and CGTMSE will play a vital role in meeting the financial requirements of MSEs in Assam. It is expected to provide a boost to entrepreneurship and economic growth in the state. The government urges all MLIs to popularize the ACGS and ensure that MSEs can avail the benefits of this scheme. MLIs are requested to inform all their offices located in Assam about the details and provisions of the ACGS.
The Assam Credit Guarantee Scheme (ACGS) is a step towards creating a conducive environment for MSEs to thrive and contribute to the overall development of the state's economy.