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?
    A ₹500 lakh Correct Answer Incorrect Answer
    B ₹1000 lakh Correct Answer Incorrect Answer
    C ₹250 lakh Correct Answer Incorrect Answer
    D ₹50 lakh Correct Answer Incorrect Answer
    E ₹1 crore Correct Answer Incorrect Answer

    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.  

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