Question
Which of the following is a key feature of the Green
Finance Scheme (GFS) designed to promote green initiatives among MSMEs?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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