Question
Which of the following statements about Member Lending
Institutions (MLIs) under CGTMSEās Credit Guarantee SchemeāI (CGSāI) is MOST accurate?Solution
Under CGTMSEās first scheme, CGSāI, only the MLIs registered under CGSāI are eligible to give guaranteeābacked loans ([cgtmse.in][1]). NBFCs fall under CGSāII (Credit Guarantee Scheme for NBFCs), which is a separate scheme and does not make them eligible under CGSāI ([cgtmse.in][1]). Option A is wrong because NBFCs are not included in CGSāI unless registered under a different scheme. Option B is too restrictiveāit omits banks under CGSāI beyond public/regional rural banks. Option C combines CGSāI and CGSāII institutions, which is incorrect. Option E is incorrect because only direct registration under CGSāI qualifies; mere partnerships donāt confer eligibility.Ā
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