CGTMSE Guarantee Cover Goes Live on TReDS to Strengthen MSME Working Capital Access

The Ministry of Micro, Small and Medium Enterprises has rolled out credit guarantee coverage on the Trade Receivables Discounting System (TReDS) platform through the integration of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Portal with M1xchange, RXIL, and DTX (KredX). This initiative stems from the Union Budget 2026-27 announcement to support invoice discounting for Micro and Small Enterprises (MSEs). The initiative aims to mitigate credit risk for financiers, improve working capital access, address delayed payments, and digitize the guarantee journey. Eligibility requires both buyers and sellers to be MSEs, with a guarantee cover of 75% of the default amount and revolving maximum exposures of ₹10 crore for buyers and ₹2 crore for sellers.