TN MSMEs Secure Over Rs 30,000 Crore in CGTMSE Credit Guarantees in FY26
Tamil Nadu has emerged as one of the top-performing states under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, with credit guarantees and job generation recording strong growth across the past three financial years, according to data presented in the Lok Sabha by Union Minister of State for MSMEs Shobha Karandlaje.
The loan amounts guaranteed for Tamil Nadu MSMEs rose from Rs 15,061 crore in FY2023-24 to Rs 21,547 crore in FY2024-25, reaching Rs 30,072 crore in FY2025-26. In the first quarter of FY2026-27 up to June 30, 2026, an additional Rs 6,816 crore has already been approved across 28,747 guarantees.
The total number of guarantees approved for micro and small enterprises in the state stood at 1,13,815 in FY2023-24, increasing to 1,79,817 in FY2024-25, before moderating to 1,53,804 in FY2025-26.
In terms of employment generation, CGTMSE-backed lending in Tamil Nadu supported an estimated 4.12 lakh jobs in FY2023-24, 5.35 lakh in FY2024-25, and 7.40 lakh in FY2025-26. This reflects an increase of nearly 80 percent in employment generation over a two-year span. An estimated 2.04 lakh jobs were generated in the first quarter of FY2026-27 alone. Tamil Nadu ranked behind Uttar Pradesh, Maharashtra, and Karnataka in job creation under the scheme.
Since the inception of the scheme in 2000 by the Ministry of MSME and SIDBI, Tamil Nadu has accumulated 10.99 lakh guarantees valued at Rs 1,10,838 crore. Across the country, Uttar Pradesh leads with 21.33 lakh guarantees worth Rs 1,58,250 crore, followed by Maharashtra with 12.49 lakh guarantees valued at Rs 1,91,536 crore. Tamil Nadu ranks ahead of Karnataka, which recorded 10.28 lakh guarantees worth Rs 1,10,157 crore, and Gujarat with 7.08 lakh guarantees worth Rs 1,32,887 crore.
Nationally, CGTMSE has approved more than 1.49 crore cumulative guarantees worth Rs 15.12 lakh crore, generating an estimated 96.09 lakh jobs across India in FY2025-26.
The updates come alongside parliamentary approval for the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, which passed the Rajya Sabha on August 3 and the Lok Sabha on August 7 to update the MSMED Act, 2006.
