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Credit Guarantee Scheme

Getting loans from banks and other financial institutions is found to be difficult for artisans and entrepreneurs in the crafts sector. The credit guarantee scheme seeks address this issue, and ensure credit flow to the handicrafts sector. It alleviates difficulties associated with of collateral security or third party guarantee to get bank loans.

 

Under the scheme, the government gives guarantee for collateral free loans up to Rs 25 lakh to artisans/ producers groups/ Self Help Groups.

 

Eligibility

The handicraft artisans/ producers groups/Self Help Groups who are engaged in manufacturing activities in Handicrafts Sector are eligible. The three year scheme covers loans from banks that are members of the Credit Guarantee Fund Trust For Micro and Small Enterprises (CGTMSE).

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