The Working Group has also made recommendations regarding increase in the extent of guarantee cover, absorption of guarantee fees for the collateral free loans by CGTMSE subject to certain conditions, simplification of procedure for filing claims with CGTMSE and increasing awareness about the scheme. CGTMSE, which is the implementing agency for Credit Guarantee Scheme, has been advised to expedite implementation of the recommendations.
The implementation should result in enhanced usage of the Guarantee Scheme and facilitate increase in quality and quantity of credit to MSEs, leading, eventually, to sustainable and inclusive growth. Timely detection of sickness is critical for any enterprise as any delay in this regard impinges on the revival prospects of sick, but potentially viable, units.