Feb 252017

Credit Guarantee Scheme 2 Crore Loan Yojana

Ever since, the current NDA government sworn as the ruling party of the central government of India under the leadership of Mr. Modi there has been several welfare schemes and plans are introduced every now and then for the improvement of the business sector and entrepreneurship in the nation. The experts all over the nation praised the moves taken by the current PM of India, by knowing the importance of boosting entrepreneurship among the youngster of the nation in order to reduce the unemployment ratio. Few years before the central government of India have launched Mudra Yojana in which financial assistance has been provided to the business providers, now the as an update central releases Credit Guarantee Scheme.

Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE)

Credit Guarantee Scheme was recently upgraded with the intention of providing more funds to the business owners, so that they can do businesses without any hassles and money problems. The announcement about this scheme came from the PM of India after demonetization impact, so many business owners might feel and hope it will boost their business sector.

Few days before the scheme which was announced by the PM Mr. Modi got approval from the cabinet and also the press release from the government officials conveyed that the loan amount for the business unit will be provide without any guarantee from the owners side.

Key points about the Credit Guarantee Scheme

  • Under this new welfare scheme, majority of the Micro and Small scale enterprises will be benefited in-terms of receiving financial assistances from the government.
  • As the per the new scheme, the small and micro business unit owners can avail up to Rs.2 Crore amount from the nationalized banks of India and also selective regional & Rural banks which are approved by the NABARD also providing such financial assistances.
  • The whopping amount for the business owners offered under this scheme will be provided without any guarantee by the nationalized bankers all over the India. So the business owners need not to worry about the providing valid guarantee documents for availing loans from banks.
  • The loan amount provided under this scheme will covers the time period of 5 years as guarantee free, also in those time the annual fee of 1% will be collected from the net credit amount received by the eligible micro or small business owners.
  • Earlier the scheme offered the loan amount to the eligible business units up to Rs.1 Crore, now the experts all over the nation believes the loan amount has been increased due to the impact of recent banning activities of Indian higher value currency.

The information about the implementation of this enhanced loan scheme for the business owners was hinted by the PM Mr. Modi on the eve of the New Year, after the submission the union budget of India in the house, the cabinet ministry approved the Modi’s welfare scheme of providing financial assistance to the small and micro business units in form of higher amount as loan. As the entire business sectors especially small and micro units faced strong impact due to the demonetization, the announcement of enhanced loan scheme will boost the owners to perform better.


  1. Announcement of SANKALP program in the Union Budget of India 2017
  2. Muktidhara Scheme in West Bengal

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