Revamped Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

Share On: Whatsapp

The Indian government has developed the Micro and Small Enterprises Scheme (MSEs). One of the key issues that MSEs confront is the lack of appropriate and timely finances accessible at a reasonable interest rate. High risks and banks’ insistence on collateral are the primary reasons why loans are not being made available to MSEs. Even for minor loans, first-generation entrepreneurs and micro-enterprises encounter numerous challenges.

Loans will be made available to both new and established businesses under the scheme. The Small Industries Development Bank of India (SIDBI), the Government of India, and the Ministry of Micro, Small, and Medium Enterprises established the Credit Guarantee Fund Trust Scheme for Micro and Small Enterprises (CGT-MSE). The Credit Guarantee Fund Trust Scheme for Micro and Small Enterprises implements the CGS-MSE. The Government of India and SIDBI contribute to the corpus of CGT-MSE at a 4:1 ratio.


  1. To arrange traditional industries and craftspeople into clusters in order to make them more competitive and to maintain their long-term viability and economies of scale;
  2. To create long-term employment for craftspeople in traditional industries and rural entrepreneurs;
  3. To improve the marketability of such clusters’ products by providing support for new items, design intervention, and enhanced packaging, as well as improving marketing infrastructure.
  4. To develop the skills and capabilities of traditional craftspeople in the related clusters through training and exposure visits.
  5. To promote optimal utilisation of infrastructure facilities, provisions should be made for common facilities as well as enhanced tools and equipment for artisans.
  6. To strengthen cluster governance structures with the active participation of stakeholders, so that they can assess new issues and opportunities and respond to them coherently;
  7. To develop innovative and traditional talents, enhanced technology, advanced processes, market intelligence, and new public-private partnership models in order to eventually reproduce similar models of cluster-based regenerated traditional industries.
  8. To seek the establishment of a multi-product cluster with an integrated value chain and a strong market-driven approach to ensure the cluster’s viability and long-term sustainability.
  9. To ensure convergence with each activity of cluster development and operations beginning with the design stage.
  10. Identifying and comprehending the cluster’s target customers, comprehending their requirements and goals, and developing and presenting product lines to suit the requirement. Significant emphasis should be placed on the customer group that sets a premium on natural, eco-friendly, ethically sourced, and unique Khadi and VI items.
  11. Based on an understanding of the target consumer category, design specialised product lines from the currently available diversified basket of heterogeneous products. To optimise the benefits, a brand unification exercise is also required.

Eligible lending institutions

The following are the financial institutions and banks that are eligible for the scheme:

  • Scheduled Commercial Banks (Foreign Banks, Private Sector Banks, and Public Sector Banks)
  • Certain Regional Rural Banks (Banks certified as ‘Sustainable Viable’ by the National Bank for Agriculture and Rural Development (NABARD).

As of May 31, 2016, there were 133 qualified lending institutions enrolled as Member Lending Institutions under the trust. The trust was made up of four foreign banks, 73 regional rural banks, 21 private sector banks, 26 public sector banks, and nine other institutions (SIDBI, North Eastern Development Finance Corporation (NEDFi), National Small Industries Corporation (NSIC), The Tamil Nadu Industrial Investment Corporation Ltd., Export-Import Bank of India, Andhra Pradesh State Financial Corporation, Jammu & Kashmir Development Finance Corporation Ltd., Kerala Financial Corporation, and Delhi Financial Corporation).

Leave a Reply

Your email address will not be published. Required fields are marked *