📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      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