2 weeks ago
Sundaram Finance joins CGTMSE to expand credit access for MSEs
A finance company in India joined a special program that helps small businesses get loans.
The company is called Sundaram Finance, and the program is called CGTMSE.
Normally, banks want people to give something valuable as a promise before giving a loan.
But many small businesses do not have enough valuable things to promise.
This program lets them borrow without that, because the government promises to cover the loan.
Sundaram Finance will now give these guaranteed loans to small businesses.
The money can be used to grow the business or pay for daily needs like supplies.
This can help businesses create more jobs.
A lot of other lenders are also part of this program, and it is growing quickly.
Sundaram Finance Ltd. has been registered as a Member Lending Institution under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
The arrangement enables eligible micro and small enterprises (MSEs) to access financing backed by government credit guarantees, including for expansion and working capital.
CGTMSE is jointly established by the Government of India and the Small Industries Development Bank of India (SIDBI) to provide collateral-free institutional credit.
Rajiv Lochan, Managing Director of Sundaram Finance, said the association would extend responsible and inclusive financing to underserved MSE segments.
CGTMSE approved credit guarantees worth approximately ₹3.06 lakh crore during 2024-25.
- Who
- Sundaram Finance Ltd. and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- What
- Sundaram Finance joined CGTMSE as a Member Lending Institution, letting eligible micro and small enterprises access government-backed, collateral-free financing.
- Where
- Bengaluru, India
- When
- Specific date not stated in the article
- Why
- To improve access to formal institutional credit for MSEs with limited collateral, supporting expansion, working capital and employment generation.
Key facts
- Company
- Sundaram Finance Ltd.
- Program
- Member Lending Institution under CGTMSE
- Purpose
- Collateral-free government-guaranteed credit for micro and small enterprises
- CGTMSE established by
- Government of India and Small Industries Development Bank of India (SIDBI)
- Sundaram Finance MD
- Rajiv Lochan
- CGTMSE CEO
- Manish Sinha
- Guarantees approved 2024-25
- Approximately ₹3.06 lakh crore
Quotes
Rajiv Lochan
Managing Director, Sundaram Finance
“the company’s association with CGTMSE would help extend responsible and inclusive financing to underserved segments of the MSE sector and enable small businesses to pursue growth opportunities.”
thehansindia.com
“partnerships with financial institutions could support entrepreneurship, investment, innovation and employment generation.”
thehansindia.com
Sources
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