Why in news?

• Recently, non-scheduled urban co-operative banks, state co-operative banks, and district central co-operative banks have been included as member lending institutions (MLIs) under the Scheme.
• The scheme was launched in 2000 jointly by Small Industries Development Bank of India (SIDBI) and Ministry of Micro, Small and Medium Enterprises.
• Objective: To make available collateral-free credit to the micro and small enterprise sector.
• Fund and non-fund based (Letters of Credit, Bank Guarantee etc.) credit facilities up to Rs 200 lakh per eligible borrower are covered
• Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises was established to implement the scheme.