Question
Under the major revamps been done under CGTMSE Scheme by
the Ministry of MSME,·ceiling for guarantee is raised from ₹2 crore to ____and enhances the threshold limit for claim settlement without initiation of legal action to ₹10 lakh.Solution
The Ministry of MSME has launched the revamped CGTMSE Scheme. CGTMSE has been provided with an additional corpus support of ₹9,000 crore in the Union Budget for FY 2023-24 to revamp its Scheme to provide a guarantee for an additional ₹2 lakh crore to Micro & Small Enterprises.  Accordingly, the major revamp measures were launched and disseminated to the lending institutions. The modifications included a reduction in guarantee fees for loans upto ₹1 crore by 50% bringing the minimum guarantee fee to the level of 0.37% pa only.    Another major change announced was raising of ceiling for guarantee from ₹2 crore to ₹ 5 crore and enhancing the threshold limit for claim settlement without initiation of legal action to ₹10 lakh.
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