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There are many government-sponsored schemes for MSMEs and the CGTMSE is one of them. Learn more about this scheme here. CGTMSE introduced the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) which guarantees credit facilities up to INR lakh on. The CGTMSE Scheme is an important schemes that every Indian Entrepreneurs and Business Owners must know about and understand. To start and manage a.

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Get a CA at affordable price. Credit facilities eligible under the Scheme.


Get expert assistance in managing your business. Provided further that, as on the material cgtmsr. The objectives of this fund are: Guarantee Fee and Annual Service Fee.

List Of Member Lending Instiutions. For the purposes of this Scheme. These industries form cgttmse very backbone of our Indian Economy. The credit facility has been recalled and the recovery proceedings have been initiated under due process of law.

Responsibilities of lending institution under the scheme: Any amount found to have been paid in excess would be refunded by the Trust. In this article, we will learn more about this fund. Scheme has ended on Dec 31 Loans are also provided to borrowers who are located in the Schene States of India including Sikkim and Jammu and Kashmir.

For the purpose of calculation of guarantee fee, the “credit facility extended” shall mean the amount of financial assistance committed by the lending institution to the borrower, whether disbursed or not. For the amounts above Rs. Trust’s liability to be terminated in certain cases. The tenure of the guarantee is a block of 5 years. Where subsequent to the Trust having released a sum to the lending institution towards the amount in default in accordance with the provisions contained in the Section 10 of this scheme, the lending institution recovers money subsequent to the recovery proceedings initiated by it, the same shall be deposited by the lending institution with the Trust, after adjusting towards the cost incurred by it for recovery of the amount.

Extent of the guarantee. In case the MLI is not in a position to take any of the action indicated in Section 13 4 of the aforesaid Act, they may initiate fresh recovery proceeding under any other applicable law and seek the claim for first installment from the Trust.


The lending institution shall, in particular, refrain from any act of omission or commission, either before or subsequent to invocation of guarantee, which may adversely affect the interest of the Trust as the guarantor. CGTMSE has introduced a new “Hybrid Security” product allowing guarantee cover for the portion of credit facility not covered by collateral security.

How can one opt for this scheme? Bank Guarantee, Letter of credit etc facilities extended by the lending institution to the eligible borrower. Above 5 lakh upto 50 lakh.

Log In Sign Up. MLIs are advised to take further action as contained in Section 13 4 of the above Act wherein a cggmse creditor can take recourse to any one or more of the recovery measures out of the four measures indicated therein before submitting claims for first installment of guaranteed amount.

CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises

Title and date of schfme. CGTMSE will, however, have pari-passu charge on the primary security as well as on the collateral security provided by the borrower for the credit facility. Credit facilities eligible under the Scheme: Get done in 7 mins. File all GST returns for your clients with automated data reconciliation – No download required.

CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises

For the purpose of the calculation of service fee, the credit facility extended shall mean the credit facilities both fund and non-fund based covered under CGS and for which guarantee fee has been paid, as at March 31, of the relevant year.

Maximum extent of Guarantee where credit facility is. Appropriation of amount received from the lending institutions. Guarantees by the Trust. Conditions imposed under the Scheme to be binding on the lending institution. The lending institution shall pay such penal interest, when demanded by the Trust, from the date of the initial release of the claim by the Trust to the date of refund of the claim.

The Board of Trustees of Credit Guarantee Fund Trust for Small Industries, having decided to frame a Scheme for the purpose of providing guarantees to a substantial extent in respect of credit facilities to borrowers in Micro and Small Enterprises, hereby make the following Scheme: Subject to the other provisions of the Scheme, the Trust undertakes, in relation to credit facilities extended to an eligible borrower from time to time by an eligible institution which has entered into the necessary agreement for this purpose with the Trust, to provide a guarantee on account of the said credit facilities.


Appropriation of amount realised by the lending agency in respect of a credit facility after the guarantee has been invoked. Further the lending institution shall secure for the Trust or its appointed agency, through a stipulation in an agreement with the borrower or otherwise, the right to list the defaulted borrowers’ names and particulars on the Website of the Trust.

The amount received from the lending institutions shall be appropriated in the order in which the service fee, penal interest and other charges have fallen due.

Supplementary and general provisions. These are small-scale industries which require immunity and special protection to flourish. The Trust shall not exercise any subrogation rights and that the responsibility of the recovery of dues including takeover of assets, sale of assets, etc.

The other sheme is that the lender availing guarantee facility should endeavor to give composite credit to the borrowers so that the borrowers obtain both term loan echeme working capital facilities from a single agency.

Proposals approved by the MLIs on or after December 8, will be eligible for the coverage upto Rs. Agreement to be executed by the lending institution. After the approval comes through the business will have to pay the borrowers will have to cbtmse the CGTMSE guarantee and service fee.

Cgtmsw proposals for sanction of guarantee approvals for credit facilities above Rs. In any case, the lender should apply for guarantee cover in respect of eligible credits sanctioned in one calendar quarter latest by end of subsequent calendar quarter.