CGCC

NBC sets new capital, risk rules for banks, financial institutions

The National Bank of Cambodia (NBC) yesterday released two proclamations that set new requirements for depositing-taking banks and financial institutions to strengthen the quality of their capital to increase the effectiveness of preventing main banking risks and assess credit risks at lower rates to boost the economic growth by supporting the private sector in the economy.

The two proclamations launched include regulatory capital of deposit-taking banks and financial institutions and a proclamation on credit risks for capital adequacy ratio of deposit-taking banks and financial institutions, which have been prepared in accordance with international standards.

The two documents were issued as an improved part of the capital adequacy frameworks for depositing-taking banks and financial institutions in the context, development and vision of the banking and financial systems, laws and regulations that are applicable in Cambodia, which would contribute to increasing the public confidence on the country’s banking systems.

A technical official at NBC told Khmer Times yesterday that the first proclamation sets restructuring of components and methodologies of calculation of regulatory capitals of deposit-taking banks and financial institutions to enhance both quantity and quality of the capital to cover losses in case of going-concern and settlement of debts in case of gone-concern.

“The first proclamation sets the requirements for the acknowledgement of financial instruments in different classes that would help the target banks and financial institutions strengthen their capital and resilience against risks such as credit risks, operations risks and market risks, which would be able to protect depositors, debtors, investors and institutions themselves,” the official said.

The requirements would enable the financial instruments of deposit-taking banks and financial institutions in Cambodia to be acknowledged in tier 1 capital that would enable them to cover losses in the going-concern scenario or during operations, or tier 2 capital that enables them to cover losses on the gone-concern scenario or in process of operations closures.

Article 8 stipulates the components of the regulatory capital, saying that the total regulatory capital is composed of the tier 1 capital that includes common equity tier 1 capital, which is considered the best quality capital as it would enable those banks and financial institutions to cover immediate losses on the going-concern scenario with six sub-components including retained earnings, audited accumulated other comprehensive income and disclosed reserves.

The regulatory capital is composed of tier 2 capital which is its second component, according to the proclamation. “The requirements to acknowledge the regulatory capitals are set in the proclamation, but each or some requirements are applicable dependently on sub-components. Let’s say this requirement is for these sub-components. So, it is difficult to explain,” added the official.

However, the official pointed out that deposit-taking banks and financial institutions are required to fulfill 14 requirements for their regulatory capital to be acknowledged as the common equity tier 1 capital including capital instruments that are the last settlement in case of liquidation of the institution. “It is too technical to explain to others.”

He went to add that there are eight requirements or conditions for the acknowledgement of the capital of deposit-taking banks and financial institutions as tier 2 capital such as capital instruments that have at least five years of maturity and capital that is not guaranteed by issuers or relevant institutions or under any agreement that increase privilege in legal or economic payment same as depositors and general debtors of institutions.

The second proclamation lowers the highest risk weight rules from 100 percent or over 75 percent for registered micro, small and medium enterprises, 85 percent for businesses registered in agriculture, education and health care sectors, 80 percent for green finance projects and zero percent for government bond issuance and credit guarantee schemes such as Credit Guarantee Corporation of Cambodia (CGCC).

Chea Serey, NBC Deputy Governor, said last Thursday before the issuance of the two proclamations that these documents would contribute to the development of Cambodia’s economy as they would enable banks and financial institutions to release more loans to businesses that are registered with the Ministry of Commerce (MoC), General Department of Taxation (GDT) and other relevant institutions.

“The two proclamations will help small and medium enterprises receive finance at reasonable interest rates as they set incentive mechanisms for banks and financial institutions to release loans to [businesses in different sectors] agriculture, green financing and consumers-friendly loans such as school fee payment, transportation vehicle purchase, etc., but they have to be commercially registered and have proper accounting statements,” Serey added.

Credit to: Khmer Times, Publish on 04 July 2023

14th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)

On 29 June 2023 at 2:00pm, CGCC organized the 14th Board of Directors Meeting at Rosewood Hotel under the chairmanship of H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance, and Chairman of CGCC’s Board of Directors, with the presence of members of the Board of Directors and the state controller.

14th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)
14th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)

The agendas of this 14th Board of Directors Meeting included: (1) CGCC Progress Report, (2) Internal Audit Report on Centralized Operations, (3) PGS with Canadia Bank Plc., Sathapana Bank Plc., and Prince Bank Plc., (4) Establishment of Investment Committee, (5) Whistle Blowing Policy, and (6) Others.

CGCC’s Board of Directors Meeting is regularly organized to review, endorse, and approve CGCC’s activities and progress, especially the credit guarantee schemes, to ensure the transparency and efficiency of CGCC.

Understanding Credit Guarantee-Interview with LOLC Microfinance Institution

Read and Download in PDF: Hear from Our PFIs – Interview with LOLC Microfinance Institution

1. What is LOLC’s perspective toward the credit guarantee schemes and why does LOLC to partner with CGCC?

  • LOLC Management is pleased to participate with CGCC to seize the partnership opportunity to further expand the market through new lending with CGCC guarantees. This credit guarantee scheme is very important for both LOLC and its clients, especially those who do not have collateral to provide access and encourage small and medium enterprises in Cambodia to access easy capital at low-interest rates to rehabilitate, start or expand their businesses.
  • LOLC joins CGCC as a participating financial institution, seeing that this credit guarantee scheme plays an important role in supporting the overall national economic growth, giving access to small and medium enterprises in Cambodia to access to financing to rehabilitate, start and expand their businesses, at the same time providing local employment opportunities for people to have jobs and income to support their families.

 

2. How do the credit guarantee schemes benefit LOLC and your customers?

In collaboration with CGCC, LOLC has the opportunity to further expand the potential market and have the confidence to expand lending to potential clients who have enough repayment capacity and want to expand their businesses but do not have sufficient collateral. In addition, the CGCC credit guarantee scheme plays an important role in fulfilling the needs of clients to expand their business and eliminate their worries from the words, “No matter how good his/her business is, without collateral, they are not able to borrow money from microfinance institutions or banks”. But now, even without collateral, clients can borrow money from microfinance institutions or banks to do business if they are able to make repayments and have a clear business plan.

 

3. What is LOLC’s strategy in structuring loans with CGCC’s guarantees? What are the main criteria of LOLC’s loan assessment?

In fact, LOLC has developed some clear strategies in structuring loans under the CGCC credit guarantee, such as:

  • Providing loans to clients who have clear and legal business, good cash flow, good credit history, whether the clients have collateral or no collateral, especially lending to clients who are small and medium enterprises (SMEs) aiming to expand their businesses, which contribute to society by providing employment to people with a decent income to support their daily family life.
  • Providing loans to clients who have a risky business but expect the business to improve soon.
  • Providing loans to key priority sectors that can contribute to the rehabilitation and upliftment of clients affected by the Covid-19 pandemic, which LOLC expects clients’ businesses to improve soon.

To assist potential clients in obtaining a guaranteed loan, LOLC has some criteria for loan assessment as the following:

  • Clients shall have clear and legal businesses.
  • Clients shall have a good cash flow to be eligible to get the loan and be able to repay it back.
  • Clients shall have a good reputation and good repayment history.
  • Clients shall have a clear business plan and clear purpose of using the loan effectively.
  • Clients can have some working capital in their business.
  • The client’s business is in good condition with quality products and services, reasonable prices, market needs, staff, and leaders with experience and skills.
  • Clients who have or do not have collateral or have collateral but not sufficient can also get the loan.

 

4. LOLC is CGCC’s Top 4 PFIs in disbursing guaranteed loans in 2022. What is the LOLC’s strategy to keep up with this momentum and to further expand the disbursement of guaranteed loans in 2023?

LOLC will continue providing more credit to clients, for those who have collateral and no collateral, to meet their needs for all sectors to improve their living standards and to continue contributing to the royal government to promote economic growth in Cambodia. Through this, LOLC will further encourage the branch management to disseminate this credit guarantee scheme widely to all target customers, especially new customers who have not yet received a loan from LOLC, for clients who have collateral or do not have collateral or have collateral but not sufficient. The most important thing is that clients have a clear legal business, a good reputation, a good credit history, strong cash flow, and good business conditions.

 

5. Besides providing guaranteed loans, what LOLC and CGCC should do together to support the MSMEs in Cambodia?

In addition to providing credit services, CGCC and LOLC will continue working together to support non-financial services to increase the understanding or additional skills related to financial literacy to entrepreneurs, especially small and medium business owners in Cambodia, to give them more knowledge on governance, financial literacy such as cash management, expense management, which contributes to more efficient business management of clients.

 

CGCC provides $120M credit guarantees to biz

The Credit Guarantee Corporation of Cambodia (CGCC) provided credit guarantees of $120 million to businesses as of February 2023.

CGCC announced on Wednesday that it supported 1,367 businesses by providing credit guarantees for their loan applications as of the end of April 2023.

The report stated that a significant portion of the loan guarantees were used for working capital, investment, business expansion, and capital expenditures.

The total amount of outstanding guaranteed loans was $97.5 million, while the total amount of outstanding guaranteed obligations was $70.32 million.

It said that there are 1,249 small and medium-sized businesses (SMEs) and 118 large businesses in Cambodia.

About 550 were women-owned, 513 were secured loans, and 854 were unsecured loans.

CGCC said that various credit guarantee schemes played a vital role in strengthening entrepreneurship and improving financial inclusion in Cambodia, particularly during the Covid-19 pandemic, by facilitating the smooth distribution of loans.

It launched three guarantee schemes so far, including the Business Recovery Guarantee Scheme (BRGS) in March 2022; the Co-Financing Guarantee Scheme (CFGS) in September 2021; and the Women Entrepreneurs Guarantee Scheme in April 2022. The CGCC also extended the CFGS to the tourism sector.

The CGCC, which is under the Ministry of Economy and Finance, extended the BRGS from January 1, 2023, until the $200 million scheme is fully utilized.

These guarantee schemes are a way to help businesses get the money they need to grow and succeed. They are a valuable tool for supporting entrepreneurship and financial inclusion in the country.

The extension of BRGS will include updates to some of its features, such as the scheme period, the definition of MSMEs and large firms, and the maximum loan amount for each guarantee.

BRGS aims to help businesses, including MSMEs and large firms, obtain formal loans from participating financial institutions for working capital, investment, and business expansion.

CGCC, the first credit guarantee institution in the country, was established in August 2020, during the Covid-19 pandemic, to provide timely credit to support the rehabilitation and sustainability of local businesses.

The Cambodian Credit Guarantee Corporation has played an important role in serving the needs of small and medium enterprises in Cambodia, which are struggling during the epidemic of Covid-19 and the inflation crisis, and need credit from banks for their businesses.

It played a vital role in supporting SMEs who have been struggling during the Covid-19 pandemic and the inflation crisis, and they need credit from banks to keep their businesses afloat.

Credit to : Khmer Times Published on May 19, 2023

Credit Guarantee Corporation of Cambodia Partners with Cambodia Chamber of Commerce to Hit Aim of $100M in Loans for 2023

Cambodia Investment Review

The Credit Guarantee Corporation of Cambodia (CGCC) and Cambodia Chamber of Commerce (CCC) have entered a strategic partnership to improve access to guaranteed loans for Micro, Small, and Medium Enterprises (MSMEs) in Cambodia.

The partnership was formalized with a Memorandum of Understanding (MoU) signing ceremony. This collaboration aims to provide support to MSMEs, primarily CCC members, enabling them to obtain financing despite collateral challenges and promote financial literacy across the country.

Read more: Give a Day on Credit Guarantee Schemes & Its role in Enterprise Development

CGCC is a state-owned enterprise that provides credit guarantees on loans disbursed by participating financial institutions, offering support to viable businesses that lack collateral when applying for loans.

On the other hand, CCC, the National Chamber of Commerce, represents the interests of the business community in Cambodia and plays a crucial role in promoting the private sector’s development and supporting MSMEs’ growth. This partnership will allow CCC members to benefit from CGCC’s guarantee services, providing additional security to partnering financial institutions and making it easier for CCC members to access financing.

Improving financial inclusion and financial literacy

H.E. Oknha Nguon Meng Tech, Director General of CCC, emphasized the importance of MSMEs in Cambodia’s economic development and the challenges they face, particularly financial constraints. The partnership between CCC and CGCC aims to promote access to guaranteed loans for MSMEs’ development and deepen the cooperation between the two institutions.

CGCC CEO Wong Keet Loong noted that the MoU with CCC is a significant milestone for CGCC, as it allows the organization to reach CCC members across the country. Together, CGCC and CCC will support the development of SMEs in Cambodia by improving financial inclusion and financial literacy.

The CGCC has been organizing seminars to inform the business community in Cambodia about guaranteed loans, such as the recent seminar held in Svay Rieng Province in collaboration with the Svay Rieng Chamber of Commerce. More than 50 participants attended, including management and staff of participating financial institutions and small and medium business owners in Svay Rieng.

Credit Guarantee SOE, Top Trade Body in MSME Tie-up

Initially launched as a tool to close the credit gap that emerged between small businesses during the pandemic, the CGCC issued its first guarantee in April 2021, the CGCC has already supported 1,275 businesses by providing credit guarantees for their loan applications, amounting to $113.6 million. Wong Keet Loong has set an ambitious goal for CGCC in 2023: to provide guarantees to 1,500 SMEs and guarantee $100 million in loans.

However, the rise in global interest rates might impact the CGCC’s growth. Loong pointed out that the increasing cost of funding due to rising US interest rates affects financial institutions and their lending capabilities. Despite these challenges, the CGCC remains committed to expanding the reach of its guarantees.

A focus on female-led businesses

The CGCC currently offers four different guarantee products, including the Women Entrepreneurs Guarantee Scheme (WEGS), aimed at supporting women and female-owned businesses.

According to CGCC’s data, 40% of its guarantees go to female-owned businesses, while 65% of Cambodian MSMEs are run by women. By increasing financial literacy and awareness of credit guarantees, the CGCC aims to bridge this gap and promote female entrepreneurs’ growth in Cambodia.

Read more: CBC and CGCC ink partnership to promote SME and women’s access to finance

One factor contributing to the gap between female-owned businesses and those receiving guarantees is the lack of registration for many women entrepreneurs. Improving financial literacy can address this issue, resulting in more confident, informed entrepreneurs who can negotiate better loans.

Mr. Loong has previously explained that CGCC supports unregistered businesses for their first year, with the expectation that they will register by their anniversary. If they remain unregistered, an additional 0.5% charge is applied, incentivizing businesses to formalize their registration. This approach aims to increase the number of registered female-owned businesses while still providing initial support.

The partnership between CGCC and CCC is a testament to their shared commitment to promoting economic growth and development in Cambodia. By working together, the two organizations will help SMEs overcome financing challenges and unlock their potential to drive economic growth in the country.

Credit to: Cambodia Investment Review, Published on 02 May 2023

Credit Guarantees to SMEs Reach $113 Million

The Credit Guarantee Corporation of Cambodia (CGCC) provided credit guarantees of $113.6 million to businesses as their working capital for expansion in the first quarter of this year.

CGCC said in a report that by the end of the first quarter it supported nearly 1,300 businesses by providing credit guarantees for their loan applications, amounting to $113.6 million.

The large portions of loan guarantees were used as working capital and other purposes of investment or business expansion, and capital expenditure, the report mentioned.

Various credit guarantee schemes played crucial roles in strengthening entrepreneurship and enhancing financial inclusion in Cambodia, especially during the Covid-19 pandemic, through the smooth disbursal of loans, CGCC said.

For SMEs and MSMEs, it improves financial inclusion. It enables them to borrow without having the burden of providing collateral whenever their business capacity grows and they have higher loan requirements.

The CGCC has come up with three guarantee schemes so far — the Business Recovery Guarantee Scheme (BRGS) launched in March 2022, the Co-Financing Guarantee Scheme (CFGS) unveiled in September 2021 and the Women Entrepreneurs Guarantee Scheme, which was launched in April 2022, besides the extension of the CFGS to tourism.

The CGCC of the Ministry of Economy and Finance has extended the BRGS from January 1, 2023, until the $200-million scheme is fully utilized to support businesses including MSMEs as well as large firms by enhancing their access to formal loans from the Participating Financial Institutions (PFIs) for working capital investment and business expansion.

Updating some scheme features, including the scheme period, the definition of the micro, small and medium enterprises (MSMEs) and large firms, and the maximum loan amount for each guarantee are on the extension of BRGS.

BRGS aims to support businesses, including MSMEs and firms, to enhance their access to formal loans from Participating Financial Institutions for working capital, investment, and business expansion.

Credit to: Khmer Times, Published on 25 April 2023

Credit Guarantee SOE, Top Trade Body in MSME Tie-up

State-owned Credit Guarantee Corporation of Cambodia Plc (CGCC) and Cambodia Chamber of Commerce (CCC) are joining forces to foster better access to guaranteed loans for the development of the Kingdom’s micro-, small- and medium-sized enterprises (MSME), and to provide support to these smaller businesses, “mainly CCC members”, according to a statement.

A memorandum of understanding (MoU) was signed to this effect between CGCC CEO Wong Keet Loong and Nguon Meng Tech, director-general of the CCC – the Kingdom’s apex trade body, at a ceremony last week, the statement noted.

“This cooperation will provide support to MSMEs – mainly CCC members – for greater access to finance despite collateral challenges, and to promote financial literacy, including credit guarantees to CCC members across the country,” it said.

Meng Tech underlined the damage wrought by the Covid-19 crisis on regional and global economies, especially how MSMEs have struggled to procure sufficient funds to keep their doors open.

“The MSMEs play significant roles in economic development. However, they face a lot of challenges, particularly financial constraints. In this regard, the MoU signing [by] CCC and CGCC today aimed specifically to promote access to guaranteed loans for the development of MSMEs.

“The MoU signing is also a positive sign that will help strengthen and deepen the cooperation between the two institutions,” he said in the statement.

The CGCC’s Wong added in the statement: “This MoU signing with the [CCC] is an important milestone for CGCC, as it enables CGCC to reach out to the members of CCC across the country.

“CCC, being an established business chamber with many SME [small- and medium-sized enterprises] members, will be a key partner to CGCC in promoting the understanding of the benefits of the credit guarantee,” the Malaysian said.

“Together with CCC, we can support the development of SMEs in Cambodia by improving financial inclusion and financial literacy,” he added.

The statement lauded the CGCC-CCC partnership as a demonstration of “a shared commitment to promoting economic growth and development” in the Kingdom. “By working together, the two organisations will help SMEs overcome financing challenges and unlock their potential to drive economic growth in the country,” it said.

Cambodia Post Bank Plc (CPBank) CEO Toch Chaochek commented to The Post on April 30 that the CGCC’s credit guarantees have played an “important role”, as collateral for loans, in ensuring access to formal finance among MSMEs.

“With the CGCC’s support, our MSMEs have been able to access more funds to support their businesses after being hit so hard by the Covid-19 pandemic over the past two years,” he said.

Incorporated in November 2020, the CGCC is run under the Ministry of Economy and Finance’s technical and financial assistance. The state-owned enterprise’s (SOE) central mission is “to provide credit guarantees to lenders on loans made to businesses based on international standards to share the risk with lenders and to improve financial inclusion”, its website says.

The CGCC was established by Sub-Decree No 140/ANKR/BK on September 1, 2020, and its $200 million Business Recovery Guarantee Scheme (BRGS) was launched on March 29, 2021 in a bid to widen access to formal loans from participating financial institutions (PFI) for working capital, investment and business expansions.

The enterprise announced that it had issued a total of 1,275 Letters of Guarantee (LG) for loans worth $113.6 million equivalent as of March 31 – up eight per cent from end-February and up 258 per cent year-on-year, in terms of value. MSMEs accounted for 1,173 – or 92 per cent – of the LGs.

As of March 31, the outstanding guaranteed amount was $65.4 million out of the $90.7 million worth of loans covered by the LGs, as noted by the CGCC, remaining in the 70-80 per cent target range at just over 72 per cent.

Credit to: The Phnom Penh Post, Published on 30 April 2023

Cambodia’s Credit Guarantee Agency, Chamber of Commerce Sign MoU to Boost Loan Access for MSMEs

PHNOM PENH, April 28 (Xinhua) — State-owned Credit Guarantee Corporation of Cambodia (CGCC) and the Cambodia Chamber of Commerce (CCC) have signed a memorandum of understanding (MoU) to promote access to guaranteed loans for the development of micro, small and medium enterprises (MSMEs), said a joint statement on Friday.

The cooperation will provide support to MSMEs, mainly CCC members, with greater access to finance despite collateral challenges, and promote financial literacy, including credit guarantees to CCC members across the Southeast Asian country, the statement said.

The CGCC is a state-owned enterprise providing credit guarantees on loans disbursed by participating financial institutions to support viable businesses that lack collateral when applying for loans, the statement added.

CGCC Chief Executive Officer Wong Keet Loong said the MoU will make it easier for CCC members to access financing, and demonstrate a shared commitment to promoting economic growth and development in Cambodia.

“Together with CCC, we can support the development of SMEs in Cambodia by improving financial inclusion and financial literacy,” he said. “By working together, the two organizations will help MSMEs overcome financing challenges and unlock their potential to drive economic growth in the country.”

CCC Director-General Nguon Meng Tech said the MSMEs play significant roles in economic development, but at the same time, they face a lot of challenges, particularly financial constraints.

“The MoU is a positive sign that will help strengthen and deepen the cooperation between the two institutions,” he said.

Incorporated in 2020, the CGCC had supported 1,275 businesses by providing credit guarantees for their loan applications in a total amount of 113.6 million U.S. dollars as of March 2023, the statement said.

Credit to: Xinhua, Published on 28 April 2023

CGCC Town Hall Meeting 2023 on “Milestones and Strategy Plan”

On 03 April 2023, CGCC organized the first Annual Town Hall meeting, a gathering of all CGCC staff to report on progress and milestones to the Executive Committee (Exco) of CGCC as well as sharing with the staff on the previous year’s and the first quarter of 2023 progress, especially on the strategy and action plan of each respective departments in 2023.

CGCC Town Hall Meeting 2023 on “Milestones and Strategy Plan”
CGCC Town Hall Meeting 2023 on “Milestones and Strategy Plan”

This town hall meeting is not only for sharing the progress report and plans from all departments, but also for a dialogue platform to openly discussion and obtain recommendations from management on the direction of CGCC’s operations and vision in improving financial inclusion and develop SMEs in Cambodia.

Within the 2 years of operation, CGCC is strongly supported by the Royal Government, and under the direct guidance from the Ministry of Economy and Finance (MEF). CGCC operates with the strong leadership of management, who has extensive experiences in banking and financial sector. As such, CGCC has grown steadily, and as of the end of the first quarter of 2023, the CGCC has more than 40 employees working in solidarity and same goal to achieve the vision of the company.

CGCC Town Hall Meeting 2023 on “Milestones and Strategy Plan”
CGCC Town Hall Meeting 2023 on “Milestones and Strategy Plan”
CGCC Town Hall Meeting 2023 on “Milestones and Strategy Plan”
CGCC Town Hall Meeting 2023 on “Milestones and Strategy Plan”

Click here to know more: 13th Board of Directors Meeting of Credit Guarantee Corporation of Cambodia (CGCC)

CGCC provides $105M credit guarantees to over 1K businesses

The Credit Guarantee Corporation of Cambodia (CGCC) provided credit guarantees of $105 million as of February to businesses as their working capital for expansion.

In a factsheet issued on March 10, CGCC said that as of the end of February it has supported 1,155 businesses by providing credit guarantees for their loan applications, amounting to $104.9 million.

Large portions of the loan guarantee were used as working capital and other purposes of investment or business expansion, and capital expenditure, the report mentioned. As of January 2023, the outstanding guaranteed loan was $81.6 million while the outstanding guaranteed amount was $58.8 million.

Various credit guarantee schemes have played a crucial role in strengthening entrepreneurship and enhancing financial inclusion in Cambodia, especially during the Covid-19 pandemic, through the smooth disbursal of loans, CGCC said.

The CGCC has come up with three guarantee schemes so far — the Business Recovery Guarantee Scheme (BRGS) launched in March 2022, the Co-Financing Guarantee Scheme (CFGS) unveiled in September 2021 and the Women Entrepreneurs Guarantee Scheme launched in April 2022, besides the extension of the CFGS to tourism. The CGCC of the Ministry of Economy and Finance has extended the BRGS from January 1, 2023, until the $200-million scheme is fully utilised.

Updating some scheme features, including the scheme period, the definition of the micro, small and medium enterprises (MSMEs) and large firms, and the maximum loan amount for each guarantee are on the extension of BRGS.

BRGS aims to support businesses, including MSMEs and firms, to enhance their access to formal loans from Participating Financial Institutions for working capital, investment, and business expansion.