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?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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