Question
What is the tenure of guarantee cover provided for
working capital facilities under the Credit Guarantee Scheme for Micro and Small Enterprises?Solution
The scheme distinguishes between term loans/composite credit and working capital facilities when it comes to guarantee tenure. For term loans, the guarantee cover is provided for the agreed duration of the loan. In contrast, for working capital facilities, the scheme provides guarantee cover for a period of 5 years or a block of 5 years. This structured time frame helps in managing the risk exposure for the Credit Guarantee Trust while ensuring reasonable duration for enterprise stabilization and operational continuity.
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Fibonacci Heaps support Decrease-Key in:
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