CGTMSE launches Udaan portal to increase the reach of Credit Guarantee
Scheme to eligible entrepreneurs and entities
Ahmedabad, August: 2020. Udaan portal is a digital platform for Micro and Small Enterprises
(MSEs) looking forward to applying for collateral free loans wherein the portal gives
Provisional Guarantee Certificate to avail collateral free loans from their preferred Banks /
Non-Banking Financial Companies (NBFCs). The portal’s main objective is to provide impetus
to credit in financial ecosystem of India.
Shri Mohammad Mustafa, IAS, Chairman and Managing Director, SIDBI, launched the
Udaanportal today in a web-based program which was attended by more than 40 Lending
Institutions. CGTMSE is delighted to share that there shall be no upfront fees/payment to be
made by MLIs for getting onboarded on ‘Udaan’portal.
Speaking of the occasion, Shri Mustafa said, “Guarantee basically
has been a back-ended product as guarantee is issued after
sanction of loan. We wanted to change it by creating a platform
whereby entrepreneurs see their suitability for guarantee-based
loan products from various MLIs. CGTMSE 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.”
Shri Mustafa expressed confidence that this could be a game changer as it has been
internationally in the countries like Korea, Malaysia, United States of America etc. He also
called upon all the MLIs to popularize the portal as ultimately it is in their hands to increase
coverage of entrepreneurs coming out of the portal. Shri Mustafa emphasized that specially
in the COVID-19 era, this is a very good tool to help and equip entrepreneurs to reach out to
lenders to meet their financial needs.
Majority of the data required by MLI for credit decisioning are collated through Udaan
portal and sent across to banks for faster turn-around time (TAT) and quick sanctions. MLIs
are provided with an option to create multiple products, in accordance with their internal
credit policies. Upon creation of these products, portal shall automatically do the match
making at the back end and provide MLI with the filtered leads matching their products
parameters.
The ‘Udaan’ portal has already onboarded 35 MLIs who are going to be part of this
milestone portal. With such an exhaustive list of public sector banks, private sector banks
and NBFCs, applicant shall have varied option to avail credit backed by CGTMSE’s guarantee.
Being a digital journey, there shall be a seamless flow of data to MLI selected by applicant
without any physical intervention. The journey where borrowers shall login, submit their
consent-based details and based on their eligibility, a Provisional Guarantee Certificate will
be issued, and the application would be transferred to the MLIs selected by applicant. MLI
may thereafter carry out their due-diligence process for final decision on sanction of loan.
About CGTMSE: CGTMSE is a trust set up by Government of India and SIDBI in the year 2000
and operates the CGS for MSEs in respect of credit facilities up to ₹ 2 crore extended by its
Member Lending Institutions (MLIs), which are not backed/ partially backed by collateral
security and / or third-party guarantees.For more information, please visit:
https://www.cgtmse.in/
About SIDBI: Since its formation in 1990, SIDBI has been impacting the lives of citizens
across various strata of the society through its integrated, innovative and inclusive
approach. Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid
entrepreneurs, to high-end knowledge-based entrepreneurs, SIDBI has directly or indirectly
touched the lives of Micro and Small Enterprises (MSEs) through various credit and
developmental engagements.
To know more, check out: https://www.sidbi.in
