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Current Affairs - 2022
Which state signs(28th Oct 2022) MoU with Credit Guarantee Fund Trust for MSME borrowers?
A)
Mizoram
B)
Kerala
C)
Himachal Pradesh
D)
Meghalaya

Correct Answer : Option (D) - Meghalaya


The Meghalaya government on Friday(28th Oct 2022) signed an MoU with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGFTMSE) to help facilitate flow of credit to MSME borrowers.
 
The MoU between the state Finance department and the CGTMSE under the Ministry of MSME was signed to implement the 'Meghalaya Credit Guarantee Scheme', a statement issued by the department said.
 
This MoU will strengthen the credit delivery system and facilitate flow of credit to the MSE sector, it added.
 
Meghalaya Chief Minister Conrad Sangma who was present during the signing of the MoU emphasized that such interventions by the state government is part of the overall objective of encouraging and promoting entrepreneurship in the state.
 
Currently, the loans taken by MSME borrowers are covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) against a risk coverage of 75 per cent of the loan amount under various MSME schemes.
 
However, banks still perceive their portion of risk at 25 per cent as high. This is one of the deterrents for the banks to extend credit to the MSME borrowers..

Source : Business Standard

Published On : October 31, 2022
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