📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Which of the following statements about Member Lending

      Institutions (MLIs) under CGTMSE’s Credit Guarantee Scheme–I (CGS‑I) is MOST accurate?
      A All MLIs, including NBFCs and cooperative banks, are automatically eligible under CGS‑I. Correct Answer Incorrect Answer
      B Only public sector banks and regional rural banks registered under CGS‑I can provide collateral‑free loans with guarantee cover. Correct Answer Incorrect Answer
      C Any lending institution registered under CGS‑I, whether bank or NBFC, can be a Member Lending Institution. Correct Answer Incorrect Answer
      D Only those MLIs registered under CGS‑I are eligible; NBFCs registered under CGS‑II or other schemes are excluded. Correct Answer Incorrect Answer
      E MLIs not registered under CGS‑I can also offer guarantee cover under CGTMSE if they partner with a CGS‑I registered institution. Correct Answer Incorrect Answer

      Solution

      Under CGTMSE’s first scheme, CGS‑I, only the MLIs registered under CGS‑I are eligible to give guarantee‑backed loans ([cgtmse.in][1]). NBFCs fall under CGS‑II (Credit Guarantee Scheme for NBFCs), which is a separate scheme and does not make them eligible under CGS‑I ([cgtmse.in][1]). Option A is wrong because NBFCs are not included in CGS‑I unless registered under a different scheme. Option B is too restrictive—it omits banks under CGS‑I beyond public/regional rural banks. Option C combines CGS‑I and CGS‑II institutions, which is incorrect. Option E is incorrect because only direct registration under CGS‑I qualifies; mere partnerships don’t confer eligibility. 

      Practice Next
      More Previous Year Paper Questions
      ask-question