Question
As per the Credit Guarantee Scheme for Micro and Small
Enterprises, what is the maximum credit facility limit eligible for guarantee coverage when extended by Public Sector Banks, Private Sector Banks, Foreign Banks, and select Financial Institutions?Solution
Under the Credit Guarantee Scheme for Micro and Small Enterprises (CGS-MSE), different categories of lenders have different upper credit limits for guarantee coverage. For Public Sector Banks, Private Sector Banks, Foreign Banks, and select Financial Institutions, the maximum eligible credit facility per borrower is ₹10 crore. This means that loans up to ₹10 crore extended by these institutions to eligible MSE borrowers can be guaranteed under the scheme. This threshold is higher than those applicable for Regional Rural Banks (₹2 crore) or Microfinance Institutions (₹50 lakh), reflecting the capacity and scale of these institutions.
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