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      Question

      Which of the following is a key feature of the Green

      Finance Scheme (GFS) designed to promote 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 β‚Ή50 crore for MSMEs Correct Answer Incorrect Answer
      C Assistance covered under risk-sharing facilities like CGTMSE and PRSF Correct Answer Incorrect Answer
      D Eligibility limited only to renewable energy projects Correct Answer Incorrect Answer
      E Exclusively available for manufacturing sector MSMEs Correct Answer Incorrect Answer

      Solution

      The Green Finance Scheme (GFS) provides support for MSMEs adopting green and sustainable initiatives. Its features include: β€’ Term loans in rupee or foreign currency with a repayment period of up to 7 years, including a 2-year moratorium. β€’ Loan limit: Up to β‚Ή20 crore for MSMEs and β‚Ή50 crore for service providers/aggregators. β€’ Risk-sharing support: Assistance may be covered under CGTMSE (Credit Guarantee Fund Trust for MSEs)and PRSF (Partial Risk Sharing Facility). β€’ Eligibility: Both manufacturing and service sector entities engaged in energy efficiency, renewable energy, waste management, and similar green projects. Thus, the risk-sharing facility coverage under CGTMSE and PRSF stands out as a defining feature of GFS.

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