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      Question

      Under the CGTSME scheme, banks can extend

      collateral-free credit up to ₹10 crore. However, the guarantee cover is not 100%. Which of the following best explains the guarantee coverage structure?
      A 100% for all MSEs up to ₹10 crore Correct Answer Incorrect Answer
      B 75% for loans above ₹2 crore and up to ₹5 crore Correct Answer Incorrect Answer
      C 85% for women-owned units and 75% for others Correct Answer Incorrect Answer
      D 80% flat guarantee for all loans Correct Answer Incorrect Answer
      E 50% only for trading activities Correct Answer Incorrect Answer

      Solution

      Correct Structure (as per latest CGTMSE guidelines): The CGTSME generally covers up to 85% for micro & small units, especially those owned by women, and 75% for others. The maximum cap is ₹10 crore. Hence, (c) is correct.

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