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      Question

      Which of the following best defines the purpose of the

      CGTMSE scheme in India?
      A Provide subsidies for export finance Correct Answer Incorrect Answer
      B Offer collateral-free loans to large corporations Correct Answer Incorrect Answer
      C Facilitate credit to micro and small enterprises without collateral Correct Answer Incorrect Answer
      D Finance government infrastructure Correct Answer Incorrect Answer
      E Secure home loans for middle class Correct Answer Incorrect Answer

      Solution

      Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) supports MSE units by offering collateral-free credit. It provides a credit guarantee to banks, reducing their risk.

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