CGTMSE Scheme PDF

PDF Name	CGTMSE Scheme
No. of Pages	64
PDF Size	18.03 MB
Language	English
PDF Category	Government
Source / Credits	Multiple Sources
Uploaded By	Pradeep

CGTMSE Scheme - Summary

CGTMSE Scheme: Your Guide to Credit Guarantees for MSMEs

CGTMSE offers a credit guarantee to financial institutions that provide loans to Micro, Small, and Medium Enterprises (MSMEs). This scheme ensures that lending institutions receive a guarantee up to a certain limit for all lending done to the MSME sector, making it easier for businesses to access funds.

Who Can Benefit?

All new and existing MSMEs can benefit from this credit guarantee, provided they meet specific conditions. Let’s take a closer look at these conditions:

The trust guarantees up to 75% of the defaulted principal amount (up to 85% for a select category of borrowers). The maximum guarantee cap is Rs. 37.50 lakh for credit facilities up to Rs. 50 lakh.
The term credit, including interest on the principal, is covered for a period of one-quarter or the outstanding capital advances with interest, whichever is lower, as on the date the account becomes a Non-Performing Asset (NPA) or the date of filing a suit.
Other charges, like penal interest, commitment charges, service charges, or any other fees, do not qualify for the guarantee cover.
Small and micro-enterprises owned and/or operated by women can receive a guarantee cover of 80%. Additionally, all credit/loans in the North East Region (NER) for credit facilities are eligible for a guarantee of Rs. 50 lakh. Note that sectors such as retail trade, educational institutions, agriculture, training institutions, and Self-Help Groups (SHGs) are not eligible for guarantee cover under CGTMSE.
CGTMSE also supports rehabilitation assistance for business units that are struggling due to factors beyond management control. In such cases, CGTMSE covers loans for rehabilitation up to a credit cap of Rs. 100 lakh.

Learn More & Download

For more details, you can download the CGTMSE Scheme in PDF format using the link provided below. This will help you understand how to leverage this beneficial scheme for your MSME’s growth! 📄

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