Canara Bank, a leading public sector lender has inked MoU with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Mumbai.

The main aim of entering into this MoU is to implement risk sharing facility scheme for advances to micro and small enterprises.

The scheme helps the bank to extend collateral free loans upto Rs 100 lakh for micro and small industries.

Under the scheme the CGMTSE would offer guarantee cover up to 50% of the credit extended by the bank.

According to the sources, Implementation of the scheme is expected to give fillip to growing entrepreneurs in the micro and small sector.