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    Question

    As per the Credit Guarantee Scheme for Micro and Small

    Enterprises (CGS-MSE), 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?
    A ₹2 crore Correct Answer Incorrect Answer
    B ₹5 crore Correct Answer Incorrect Answer
    C ₹10 crore Correct Answer Incorrect Answer
    D ₹50 lakh Correct Answer Incorrect Answer
    E ₹1 crore Correct Answer Incorrect Answer

    Solution

    The Credit Guarantee Scheme sets different maximum credit facility limits depending on the type of lending institution: • For Public Sector Banks, Private Sector Banks, Foreign Banks, and select Financial Institutions, the maximum eligible credit per borrower is ₹10 crore. • For Regional Rural Banks (RRBs), the maximum limit is ₹2 crore. • For Microfinance Institutions (MFIs), the maximum limit is ₹50 lakh. This differentiation ensures that larger institutions with greater capacity can extend higher volumes of guaranteed credit, while smaller institutions operate with lower thresholds tailored to their lending reach.

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