Reported by: banking|Updated: September 2, 2020
CGTMSE, or Credit Guarantee Fund Trust for Micro and Small Enterprises, has launched a new Udaan portal to increase the reach of credit guarantee scheme to eligible entrepreneurs and entities. The portal helps MSEs looking forward to applying for collateral free loans by giving Provisional Guarantee Certificates to avail of loans from banks and NBFCs. Mohammad Mustafa, Chairman and Managing Director, SIDBI, launched the Udaan portal recently. CGTMSE will not charge any upfront fees/payment on enterprises wanting to make use of the portal. Mustafa said guarantee basically has been a back-ended product as guarantee is issued after sanction of loan. SIDBI wanted to change it by creating a platform whereby entrepreneurs see their suitability for guarantee-based loan products from various lending institutions. CGTMSE, he said, does some value addition on the selection of eligible borrowers and then send the entrepreneurs to banks / NBFCs for financial assistance with the provisional guarantee. He also expressed confidence that this could be a game changer as it has been successfully tried in countries like South Korea, Malaysia, United States of America etc.