According to the Tiruppur Exporters’ Association, the Center’s decision to lower interest rates on loans secured through the Credit Guarantee Fund Trust for Micro & Small Businesses (CGTMSE) will draw more entrepreneurs to the Tiruppur cluster (TEA).
Nirmala Sitharaman, the finance minister, announced in the budget for 2023–24 that the CGTMSE would be updated beginning in April with an injection of 9,000 crores into the corpus to enable an increase in collateral-free guaranteed credit to 2 lakh crores and a one percent decrease in the cost of the credit. The lowering of the yearly guarantee charge for loans up to one crore will primarily benefit MSMEs, according to KM Subramanian, President of the TEA, who commented on these announcements. He continued by saying that the change will bring in more entrepreneurs to the area.
Subramanian is also favourable. suspension of legal action for the resolution of guarantees claims for loans with balances up to 10,000.
