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    Question

    Under CGTMSE, what percentage of loss is covered in case

    of default on a loan up to ₹5 lakh to a micro enterprise?
    A 60% Correct Answer Incorrect Answer
    B 70% Correct Answer Incorrect Answer
    C 75% Correct Answer Incorrect Answer
    D 80% Correct Answer Incorrect Answer
    E 85% Correct Answer Incorrect Answer

    Solution

    In case a micro enterprise defaults on a loan up to ₹5 lakh, CGTMSE provides coverage of 85% of the sanctioned amount. This high guarantee reduces lender hesitation in financing very small businesses, which often lack collateral or formal credit history.

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