Quick Answer: What Is Quantum Of Credit Facility That Can Be Covered Under The Cgtmse Scheme?


Which loans are covered under Cgtmse?

Yes, joint financing by a financial institution (e.g. SIDBI, NSIC, and NEDFi) and Commercial bank can be covered under the scheme. For e.g. MSE unit is financed by term loan from State financial institution and Working capital from a commercial bank.

Which accounts are eligible under Cgtmse?

CGTMSE Scheme Eligibility Criteria:

  • Retail Trade.
  • Educational Institutions.
  • Agriculture.
  • Self Help Groups (SHG).
  • Training Institutes.

What is guarantee cover in Cgtmse?

The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility. The extent of guarantee cover is 85% for micro enterprises for credit up to 5 lakh.

Will be covered under Cgtmse?

The eligible borrower unit which has been covered under the Scheme and subsequently becomes sick due to factors beyond the control of the management, the assistance / credit for rehabilitation extended by the lender could also be covered under the Scheme provided the overall assistance is within the credit cap of 200

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How is Cgtmse fee calculated?

The borrower has to pay an annual Guarantee Fee of 1% p.a. of the credit facility availed, of which 0.75% is paid for credit of up to ₹ 5 Lakh and 0.85% for loan above ₹ 5 Lakh but up to ₹ 1 Cr In case of women and Micro Enterprises and units in NER, CGTMSE fee is charged for credit up to ₹ 1 Cr.

How can I get loan under Cgtmse?

Submit the business plan or project report with the necessary banks that provide loan under CGTMSE Scheme and request for sanction of bank loan from Banks providing loan under CGTMSE Scheme. The request for a bank loan can contain term loan and working capital facilities.

What is the difference between Cgfmu and Cgtmse?

After introduction of CGFMU (Credit Guarantee Fund for Mudra Units), many credit facilities upto Rs. In case of any other credit facility is sanctioned to a borrower covered under Mudra Fund, the additional facility may be covered under CGTMSE (if otherwise eligible). For example if a working capital facility of Mr.

What is the maximum loan amount that can be covered under the guarantee of Cgtmse?

Yes, the guarantee cover available will be restricted to credit of 200 lakh even though credit extended is more than 200 lakh to an eligible borrower. In other words, maximum of credit risk borne by CGTMSE is restricted to 150 lakh i.e. 75% of amount in default.

Is Cgtmse fee refundable?

Annual Guarantee fee / Annual Service Fee, shall not be refunded, except under certain circumstances like – ➢ Excess remittance, Any pre-closure marked / refund request received after 3 months from the date of receipt of fee by CGTMSE would not be considered.

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What is Cgtmse fee?

What are the fees charged by the CGTMSE? The fees charged by the trust fund is a percentage of 1% p.a of the amount so sanctioned: 0.75% – for credit of up to Rs. 5 Lakhs.

Which bank provides Cgtmse?

CGTMSE:Credit Guarantee Fund Trust For Micro and Small Enterprises – ICICI Bank.

What is credit guarantee scheme?

A credit guarantee scheme provides third-party credit risk mitigation to lenders through the absorption of a portion of the lender’s losses on the loans made to SMEs in case of default, typically in return for a fee.

What is the loan amount in PSB loan in 59 minutes?

The portal was launched by the Narendra Modi government in November to provide loans up to ₹1 crore to micro, small and medium enterprises (MSMEs) in just 59 minutes or less than an hour.

What is the repayment period in startup India loan?

Repayment for a startup Indian loan scheme can be as short as 6 months depending on the performance of the business but can also extend for a period of 4 years.

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