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    Question

    The Credit Guarantee Fund Trust for Micro and Small

    Enterprises (CGTMSE) has been set up by the Government of India, with which of the following?
    A SBI Correct Answer Incorrect Answer
    B PNB Correct Answer Incorrect Answer
    C IDBI Correct Answer Incorrect Answer
    D SIDBI Correct Answer Incorrect Answer
    E IDFC Correct Answer Incorrect Answer

    Solution

    The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a trust launched by the Ministry of Micro, Small and Medium Enterprises, Government of India , and the Small Industries Development Bank of India (SIDBI). Launched on 30 August 2000 , the primary objective of the CGTMSE scheme is to give credit guarantee to financial institutions that provide loans to SMEs and MSMEs. CGTMSE aims to encourage entrepreneurs to take collateral-free loans for starting businesses without the fear of defaulting. The trust fund will reimburse the lending institution up to a certain limit, in case the borrower defaults. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a trust launched by the Ministry of Micro, Small and Medium Enterprises, Government of India , and the Small Industries Development Bank of India (SIDBI). Launched on 30 August 2000 , the primary objective of the CGTMSE scheme is to give credit guarantee to financial institutions that provide loans to SMEs and MSMEs. CGTMSE aims to encourage entrepreneurs to take collateral-free loans for starting businesses without the fear of defaulting. The trust fund will reimburse the lending institution up to a certain limit, in case the borrower defaults.

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