Chief Minister MK Stalin introduced the Tamil Nadu Credit Guarantee Scheme (TNCGS) to offer financial assistance to micro, small, and medium-sized businesses to strengthen the MSME sector (MSMEs). TN Credit Guarantee Scheme will lessen the requirement for collateral to obtain loans for the sector. The government is encouraged by the plan to provide loans to micro, small, and medium-sized firms (MSMEs) so that they can keep running their companies. Small, medium-sized, and micro enterprises are eligible for loans from this organization up to Rs. 40 lakhs. Small businesses with fewer employees and lower operating costs are referred to as MSMEs. It might be simpler for them to grow as a result. We will give you information on the TN Credit Guarantee Plan in the section that follows, including specifics like the scheme’s goals, advantages, paperwork requirements, eligibility, etc.
TN Credit Guarantee Scheme
The Tamil Nadu Credit Guarantee Scheme was established by Tamil Nadu’s Chief Minister, MK Stalin, to provide financial aid to the state’s micro, small, and medium-sized business sector. 100 crores of rupees are set out for this program.
As part of this program, ERP systems will be created to help MSMEs address challenges with delayed payments or other interruptions from suppliers. Additionally, three banks can provide loans to MSMEs quickly under the TN Credit Guarantee Scheme (24 hours).
Additionally, according to the government, they received over 10,555 applications, of which 9212 were accepted. This is a guaranteed loan for micro, small, and medium-sized businesses. Entrepreneurs who wish to invest in their firm but lack the funds to do so may use this program to apply for a loan. Read More – TN e Sevai Portal
Tamil Nadu Credit Guarantee Scheme Objective
The government of Tamil Nadu has introduced this program, which is intended to give loans and other types of finance to MSMEs (micro, small, and medium-sized businesses). With this plan, a smaller security deposit would be needed to approve loan applications from such enterprises. This program will support the expansion of micro, small, and medium-sized businesses. With the help of this program, lenders can rest easy if a micro, small, or medium-sized business is unable to pay back the loan.
TN Credit Guarantee Scheme Benefits
- The advantages that can be realized by using TNCGS to secure credit guarantees for financial institutions that lend to MSMEs are as follows:
- The program would offer loans for new enterprises without the worry of defaulting.
- To aid in the development of micro, small, and medium-sized businesses, the TN Credit Guarantee Scheme is being implemented.
- The development of MSMEs will be aided by the scheme.
- To promote the development of the micro, small, and medium industrial sectors by making loans up to Rs. 40 lakhs available to small-size businesses with a 90% guarantee.
- Additionally, for loans worth more than Rs 40 lakh but less than Rs 2 crore, qualified borrowers will be given an 80% guarantee.
- To strengthen the MSME sector by offering financial assistance, the program will let new small business owners launch their enterprises without feeling threatened.
TN Credit Guarantee Scheme Eligibility Criteria
The following is a list of eligibility points:
- Residents of Tamil Nadu.
- To receive benefits from the program, one must be a member of the MSMEs sector.
- Must not work for the government.
TN Credit Guarantee Scheme Online Registration
The official website for registering to participate in the TN Credit Guarantee Scheme has not yet been made available. The scheme is just introduced. As soon as a notice is available, you can refer to here.