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Start learning 50% faster. Sign in nowA revamped credit guarantee scheme for India’s micro and small enterprises will come into effect April 1, 2023, with the annual guarantee fee for loans up to Rs 1 crore getting reduced from the peak 2 per cent to 0.37 percent, reducing the overall cost of credit for small businesses. The limit on ceiling for guarantees has also enhanced from Rs 2 crore to Rs 5 crore as per the information provided by the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE). Consequently, the corpus of Credit Guarantee Fund Trust for Micro & Small Enterprises has been infused with a sum of Rs 8,000 crore in March, 2023. For settlement of claims in respect of guarantees for loan outstanding up to Rs 10 lakh, initiation of legal proceedings will no longer be required.
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