Recently, the state government introduced the transformative Goa Credit Guarantee Scheme (GCGS), also recognised as the Mukhyamantri-Saral Udyog Sahayya Yojana (MSUSY). This strategic initiative is poised to bolster credit offtake within the micro and small enterprises (MSE) sector.
Under this scheme, a robust 95% credit coverage is provided, with 85% facilitated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), complemented by the remaining 10% from the state government. The primary objective of the GCGS is to amplify the guarantee coverage on loans extended by lending institutions within the state.
In a bid to stimulate credit disbursement, the scheme strives to mitigate risks for lending institutions, offering a powerful incentive to promote credit flow. Further, it aims to facilitate easy access to collateral-free credit for MSEs, fostering employment generation and injecting a competitive spirit into the MSE sector, thereby mitigating regional imbalances.
Eligibility for this scheme extends to local MSEs with Udyam registration, serving as a testament to the government’s commitment to empowering local businesses. Additionally, to qualify, the MSE unit must be operational and currently availing of collateral-free loans from banking institutions. The Goa Credit Guarantee Scheme emerges as a transformative force, envisioning a thriving MSE sector and a more competitive economic landscape in the state.
