📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Under the Credit Guarantee Scheme for Micro and Small

    Enterprises (CGTMSE), what is the guarantee cover tenure for working capital facilities?
    A 2 years or a block of 2 years Correct Answer Incorrect Answer
    B 3 years or a block of 3 years Correct Answer Incorrect Answer
    C 5 years or a block of 5 years Correct Answer Incorrect Answer
    D 10 years or a block of 5 years Correct Answer Incorrect Answer
    E Till the business remains operational Correct Answer Incorrect Answer

    Solution

    The Credit Guarantee Scheme makes a distinction between term loans/composite credit and working capital facilities. • For term loans, the guarantee cover is provided for the full agreed duration of the loan. • For working capital facilities, the guarantee cover is fixed at 5 years or in blocks of 5 years. This structured tenure helps balance risk exposure for the Credit Guarantee Trust and also provides adequate support for enterprises during their stabilization and growth phase.

    Practice Next
    More Accounts Questions

    Relevant for Exams:

    ask-question