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      Question

      What is the maximum of credit risk borne by CGTMSE for

      guaranteed coverage under the CGTMSE scheme? 
      A ₹350 lakhs Correct Answer Incorrect Answer
      B ₹325 lakhs Correct Answer Incorrect Answer
      C ₹225 lakhs Correct Answer Incorrect Answer
      D ₹375 lakhs Correct Answer Incorrect Answer
      E ₹100 lakhs Correct Answer Incorrect Answer

      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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