Chief Minister M.K Stalin has launched Tamil Nadu Credit Guarantee Scheme 2023 on 25 August 2022. TNCGS Scheme aims to support the MSME sector by providing financial aid to micro, small and medium enterprises. Tamil Nadu Credit Guarantee scheme will reduce the need for collateral to get loans for the MSME sector. In this article, we will tell you about the complete details of the credit guarantee scheme by Stalin state government.
Tamil Nadu Credit Guarantee Scheme (TNCGS) 2023
With the cooperation of the Union government’s Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE), the Tamil Nadu Credit Guarantee Scheme (TNCGS) would provide a 90% guarantee for eligible loans up to 40 lakhs. For loans over Rs. 40 lakh but under Rs. 2 crore, qualified borrowers will receive an 80% guarantee. For Tamil Nadu Credit Guarantee Scheme, the state government has set aside Rs. 100 crore rupees. The TNCGS plan makes it easier to generate an end-to-end credit score that takes into consideration financial factors in addition to credit behavior-based scores.
Under this Tamil Nadu Credit Guarantee Scheme TNCGS scheme, at least three banks were nationalized and will start lending to MSMEs. Interruptions in payments for supplies provided to larger corporations cause problems for MSMEs. All PSUs, statutory bodies, companies, and apex cooperatives in Tamil Nadu will be on an ERP platform that has been developed to solve this.
Tamilnadu Coir Business Development Corporation
Tamil Nadu state govt. has also launched a new public sector enterprise the Tamil Nadu Coir Business Development Corporation and introduced four coir clusters in Tiruppur. Besides, home textiles would be brought under the thrust sector to promote the growth and development of the sector.
CM said “I received petitions and representations from various home textile units seeking financial assistance and subsidies. The sector produces goods worth Rs 10,000 crore and exports account for more than Rs 4,000 crore.” After due consideration of the represensations, the state government decided to bring home textiles under thrust sector to help the units avail special capital subsidy.
Chief Minister also mentioned that “Apart from this, the government is taking steps to facilitate growth of MSME sectors. Under the single window system, we received more than 10,555 applications, of which 9,212 applications have been cleared. Further, export facilitation centres will be set up in every district”.
Launch of TN Trade Receivables Discounting System (TNTReDS)
CM M.K Stalin also announced the launch of Tamil Nadu Trade Receivables Discounting System, an Enterprise Resource Planning platform (ERP). TNTReDS will bring all Tamil Nadu PSUs, statutory boards, corporations and apex cooperatives together on the bill discounting platform. Lauding the government’s push for industrial growth, the Chief Minister said over 221 MOUs have been signed in the last 15 months which attracted investment of over Rs. 2.2 lakh crore that would create more than three lakh jobs. Out of this, 49 are MSMEs that have made investments of Rs. 1,300 crore and generated 1,909 jobs, stated Stalin.