Question
Under the major revamps been done under CGTMSE Scheme by
the Ministry of MSME,Ā·ceiling for guarantee is raisedĀ from ā¹2 crore to ____and enhances the threshold limit for claim settlement without initiation of legal action to ā¹10 lakh.Solution
The Ministry of MSMEĀ has launched the revamped CGTMSE Scheme. CGTMSE has been provided with an additional corpus support of ā¹9,000 crore in the Union Budget for FY 2023-24 to revamp its Scheme to provide a guarantee for an additional ā¹2 lakh crore to Micro & Small Enterprises. Ā Accordingly, the major revamp measures were launched and disseminated to the lending institutions. The modifications included a reduction in guarantee fees for loans upto ā¹1 crore by 50% bringing the minimum guarantee fee to the level of 0.37% pa only. Ā Ā Ā Another major change announced was raising of ceiling for guarantee from ā¹2 crore to ā¹ 5 crore and enhancing the threshold limit for claim settlement without initiation of legal action to ā¹10 lakh.
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