Question
In the Credit Guarantee Scheme for Micro & Small
Enterprises the limit on ceiling has been increased from __________ to __________.Solution
The corpus of Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) has been infused with a sum of Rs. 8,000 crore on 30.03.2023. CGTMSE has issued guidelines regarding reduction of annual guarantee fee for loans upto Rs. 1 crore from a peak rate of 2% per annum to as low as 0.37% per annum. This will reduce the overall cost of credit to the Micro & Small Enterprises to a great extent. The limit on ceiling for guarantees has been enhanced from Rs. 2 crore to Rs. 5 crore. For settlement of claims in respect of guarantees for loan outstanding upto Rs. 10 lakh, initiation of legal proceedings will no longer be required.
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