The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides the borrowers in the Micro and Small Enterprises (MSE) sector, including artisans, craftsmen and weavers, easy access to credit from the organized banking sector. CGTMSE provides guarantee to its registered Member Lending Institutions (MLIs) against the loans/credit facilities upto ₹ 100 lakh extended by them without taking any collateral security and/or third party guarantee to a new or existing units in the MSE sector, including units in manufacturing and service sectors. As on March 31, 2014 (cumulatively), 14,19,807 guarantees for an amount of ₹ 70,026 crore have been approved by CGTMSE. No separate data maintained for loans given to artisans, craftsmen and weavers without collateral security.

National Bank for Agriculture and Rural Development (NABARD) has formulated ‘Swarozgar Credit Card Scheme’ in the year 2003. The scheme aims at providing adequate and timely credit i.e, working capital/or block capital for both to small artisans, handloom weavers from the banking system in a flexible, hassle free and cost effective manner. The facility also includes a reasonable component for consumption needs.

Beneficiaries under the scheme are automatically covered under the group insurance scheme and the premium is shared by the bank and the borrower equally.

This information was given by the Union Minister of Finance, Shri Arun Jaitley in written reply to a question in Lok Sabha today.

Credit guarantees for MSEs enable collateral free lending, complemented by Swarozgar credit and shared group insurance protections. CGTMSE provides guarantees to registered Member Lending Institutions enabling collateral free loans to new and existing MSE units in manufacturing and services, though it does not keep separate data for artisans, craftsmen or weavers. NABARD's Swarozgar Credit Card Scheme offers timely working capital and block capital to small artisans and handloom weavers, includes consumption finance, and automatically covers beneficiaries under a group insurance with premium shared equally by bank and borrower.