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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 ₹50 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: • Term loans in rupee or foreign currency with a repayment period of up to 7 years, including a 2-year moratorium. • Loan limit: Up to ₹20 crore for MSMEs and ₹50 crore for service providers/aggregators. • Risk-sharing support: Assistance may be covered under CGTMSE (Credit Guarantee Fund Trust for MSEs)and PRSF (Partial Risk Sharing Facility). • 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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