It will enable eligible Micro and Small Enterprises (MSEs) to access Government credit guarantee-backed financing through Sundaram Finance.
The association with CGTMSE will help expand formal credit access to deserving enterprises that have viable business opportunities but limited collateral, supporting business expansion, working capital requirements and employment generation, the company said in a statement.
“Through our association with CGTMSE, we aim to expand access to responsible and inclusive finance for micro and small enterprises, particularly underserved segments, empowering them to unlock opportunities, build resilience, and contribute to India’s economic progress,” Rajiv Lochan, Managing Director, Sundaram Finance Ltd., said.
The CGTMSE scheme, jointly established by the Government of India and SIDBI, facilitates collateral-free institutional credit to Micro and Small Enterprises through credit guarantees provided to Member Lending Institutions.
“The onboarding of Sundaram Finance as a Member Lending Institution marks an important step in expanding the reach of collateral-free institutional credit. By partnering with trusted financial institutions, we aim to strengthen the MSE credit ecosystem, promote entrepreneurship and enable enterprises to invest, innovate and create employment,” Manish Sinha, CEO, CGTMSE, said.
In FY2024-25, CGTMSE approved credit guarantees aggregating approximately Rs 3.06 lakh crore, reflecting the growing momentum in expanding formal credit access to India’s MSME sector.
