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    Question

    The Credit Guarantee Fund Trust for Micro and Small

    Enterprises (CGTMSE) was established jointly by the Government of India (through the Ministry of MSME) and which institution?
    A State Bank of India (SBI) Correct Answer Incorrect Answer
    B Small Industries Development Bank of India (SIDBI) Correct Answer Incorrect Answer
    C Industrial Development Bank of India (IDBI) Correct Answer Incorrect Answer
    D Punjab National Bank (PNB) Correct Answer Incorrect Answer
    E Indian Development Finance Corporation (IDFC) Correct Answer Incorrect Answer

    Solution

    тАв The CGTMSE scheme was launched in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, in collaboration with SIDBI. тАв Its primary objective is to encourage collateral-free loans to Micro and Small Enterprises (MSEs). тАв Under the scheme, banks and financial institutions receive a credit guarantee cover (up to a specified percentage) in case the borrower defaults. тАв This reduces the lenderтАЩs risk and motivates them to extend loans to first-time or small entrepreneurs. Thus, the partner institution is SIDBI.

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