Question
What is the maximum of credit risk borne by CGTMSE for
guaranteed coverage under the CGTMSE scheme?Solution
Explanation: The guarantee cover available will be restricted to credit of 500 lakh even though credit extended is more than 500 lakh to an eligible borrower. In other words, maximum of credit risk borne by CGTMSE is restricted to 375 lakh i.e. 75% of amount in default.
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