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?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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