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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

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

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