Question
Under the Credit Guarantee Scheme for Micro and Small
Enterprises (CGTMSE), what is the guarantee cover tenure for working capital facilities?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.
In the framework of monetary policy, central banks employ various tools to manage liquidity and control inflation within the economy. One such tool invo...
Consider the following statements about Commercial Paper (CP):
1. It is a short-term, unsecured promissory note.
2. Only companies with a ...
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'Gearing Ratio' is another name for which of the following?Â
Under 'Assignment', which of the following is usually transferred to the bank?Â
In the modern business environment, the concept of Corporate Social Responsibility (CSR) has become a significant aspect of corporate governance. This c...
What is the 'Base Rate' system replaced by for new loans since 2016?Â
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1. The distinction between manufacturing and servic...
The 'Banking Ombudsman' can pass an award for compensation for mental agony/harassment up to:Â
A 'Hybrid' instrument is one that:Â
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