New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following is a key feature of the Green

    Finance Scheme (GFS) aimed at promoting green initiatives among MSMEs?
    A Loan repayment period of up to 10 years with no moratorium. Correct Answer Incorrect Answer
    B Maximum loan amount of Rs. 50 Cr for MSMEs. Correct Answer Incorrect Answer
    C Assistance covered under risk-sharing facilities like CGTMSE and PRSF. Correct Answer Incorrect Answer
    D Eligibility limited to only renewable energy projects. Correct Answer Incorrect Answer
    E Exclusively available for manufacturing sector MSMEs. Correct Answer Incorrect Answer

    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.  

    Practice Next

    Relevant for Exams: