To encourage the flow of institutional credit to Micro & Small Enterprises, the Ministry of Micro, Small & Medium Enterprises (MSME), the Government of India, and Small Industries Development Bank of India (SIDBI) jointly established the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) (MSEs). The Credit Guarantee Scheme (CGS) was introduced to improve the way that credit is delivered, to make it easier for credit to reach the MSE sector, to give underprivileged and unserved people access to capital, and to increase the availability of capital from traditional lenders to new generations of business owners. The CGTMSE has played a significant role in providing guarantee protection to third party guarantee free credit facilities offered by qualifying Member Lending Institutions [MLIs] to MSEs during the past 20 years.