As of December 18, 2025, Unstarred Question No. 2992 addressed to the Minister of Micro, Small and Medium Enterprises inquired about credit institutions under the Credit Guarantee Trust for Micro & Small Enterprises (CGTMSE). Co-operative Banks are eligible to be registered as Member lending Institutions (MLIs) under CGTMSE. As of November 30, 2025, 139 Co-operative banks are registered as MLIs under CGTMSE. The guarantee coverage for loans extended by co-operative banks to Micro and Small Enterprises ranges from 75% to 90%, with a guarantee ceiling of Rs. 2 crore per borrower for co-operative banks. Members of co-operative societies are individually eligible for guarantee coverage under CGTMSE for loans availed from MLIs for activities covered under the MSMED Act, 2006. The Minister of State for Micro, Small and Medium Enterprises is Sushri Shobha Karandlaje. The question was asked by Dr. Bhola Singh.
Key Entities Referenced
CGTMSE: Credit Guarantee Fund Trust for Micro and Small Enterprises, a scheme providing credit guarantees to micro and small enterprises.
Ministry of Micro, Small and Medium Enterprises: The ministry responsible for policies and programs relating to micro, small and medium enterprises.
MSMED Act, 2006: The Micro, Small and Medium Enterprises Development Act, 2006, which provides the legal framework for MSMEs.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 2992
TO BE ANSWERED ON 18.12.2025
CREDIT INSTITUTIONS UNDER CGTMSE
2992. DR. BHOLA SINGH:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether cooperative institutions/banks can become member Credit Institutions under the
Credit, Guarantee Trust for Micro & Small Enterprises (CGTMSE) scheme and if so, the details
thereof;
(b) the percentage of guarantee cover limit that cooperative banks are likely to get under the said
scheme; and
(c) whether the members of cooperative societies are likely to get benefits under the said scheme
and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a): Co-operative Banks are eligible to be registered as Member lending Institutions (MLIs) under
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). As on 30.11.2025, 139
Co-operative banks are registered as MLIs under CGTMSE.
(b): The extent of guarantee coverage for loans extended by co-operative banks to Micro and
Small Enterprises ranges from 75% to 90%. The guarantee ceiling per borrower for co-operative
banks is Rs. 2 crore.
(c): Members of co-operative societies are eligible in their individual capacity for guarantee
coverage under CGTMSE for loans availed from MLIs for activities covered under the MSMED
Act, 2006.
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