Question
Which of the following is a key feature of the Green
Finance Scheme (GFS) aimed at promoting green initiatives among MSMEs?Solution
The Green Finance Scheme (GFS) supports MSMEs in adopting green initiatives by offering term loans (in rupee or foreign currency) with a repayment period of up to 7 years, including a moratorium of 2 years. It allows loans of up to Rs. 20 Cr for MSMEs and Rs. 50 Cr for service providers/aggregators. Assistance may be covered under risk-sharing facilities like CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) and PRSF (Partial Risk Sharing Facility). Eligible entities include manufacturing and service providers involved in energy efficiency, renewable energy, waste management, and related green projects.
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