Question
Under the Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE) scheme, what is the ceiling for availing credit guarantee for under CGS-I?Solution
Explanation: Fund and non-fund based (Letters of Credit, Bank Guarantee etc.) credit facilities up to 500 lakh per eligible borrower are covered under the guarantee scheme provided they are extended on the project viability without collateral security or third party guarantee. However, under the "Hybrid Security" product, the MLIs will be allowed to obtain collateral security for a part of the credit facility, whereas the remaining part of the credit facility, up to a maximum of 500 lakh, can be covered under Credit Guarantee Scheme of CGTMSE. Â
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