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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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The lending institution shall exercise all the necessary precautions and maintain its recourse to the borrower for entire amount of credit facility owed by it and initiate such necessary actions for recovery of the outstanding amount, including such action as may be advised by the Trust.

CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises

Export-Import Bank of India. In the event of any representation made by the lending institution in this regard, the Trust shall take a decision based on the available information with it and the clarifications received from the lending institution, and its decision shall be final and binding on the lending institution.

The Trust shall provide guarantee as under: If any question arises in regard to the interpretation of any of the provisions of the Scheme or of any directions or instructions or clarifications cgymse in connection therewith, the decision of the Trust shall be final. Get done in 7 mins.

The amount due and payable to the lending institution in respect of the credit facility has not been paid and the dues have been classified by the lending institution as Non Performing Assets. The lending institution will hold lien on assets created out of the credit facility extended to the borrower, on its own behalf and on behalf of the Trust.

Sikkim other than credit facility upto Rs. Updated on Jul 02, – The lender should cover the eligible credit facilities as soon as they are sanctioned. The Board of Scheke 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: 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.


The Guarantee Claim sccheme directly from the branches or offices other than respective operating offices of MLIs will not be entertained. Any amount found to have been paid in excess would be refunded by the Trust. Title and date of commencement. A special preference vgtmse given to the women entrepreneurs who are eligible for this scheme. Subrogation of rights and recoveries on account of claims paid.

CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises

For the purposes of this Scheme. CGTMSE has introduced a new “Hybrid Security” product allowing guarantee cover for the portion of credit facility not covered by collateral security. Invest in best performing Mutual funds for building long term wealth. 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.

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. Schemme can one opt for this scheme? The lending institution shall also ensure either through a stipulation in an agreement with the borrower or otherwise, that it shall not create any charge on the security held in the account covered by the guarantee for the benefit of any account not covered by the guarantee, with itself or in favour of any other creditor s without intimating the Trust.

Proposals approved by the MLIs on or after December 8, will be eligible for the coverage upto Rs. Thereby transforming them from job seekers to job providers and cgtmsse contribute in nation building. The balance 25 per cent of the guaranteed amount will be paid on conclusion of recovery proceedings by the lending institution.

Appropriation of amount received from the lending institutions. As per this scheme, a loan of up to Rs. Above 50 lakh upto lakh. Paid E-filing by Expert CAs. The Trust may, on review of performance, remove any of the lending institution from the list of eligible institution. On a claim being paid, the Trust shall cgtmwe deemed to have been discharged from all its liabilities on account of the guarantee in force in respect of the borrower concerned.


Sikkim other than credit facility upto scheje lakh to micro enterprises. 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. Maximum extent of Guarantee where credit facility is. Provided further that, as on the material date. 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.

Guarantee Fee and Annual Service Fee. In particular, the lending institution should intimate the Trust while entering into any compromise or arrangement, which may have effect of discharge or waiver of personal guarantee s or security. In respect of any matter not specifically provided for in this Scheme, the Trust may make such supplementary or additional provisions or issue such instructions or clarifications as may be necessary for the purpose of schene Scheme.

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. The following credit facilities shall not be eligible for being guaranteed under the Scheme: Plans start from Rs.

Provided that the lending institution applies for guarantee cover in respect of credit proposals sanctioned in the quarter April-June, July-September, October-December and Schene prior to expiry of the following quarter viz.

All proposals for sanction of guarantee approvals for credit facilities above Rs.

The other objective is that the lender availing guarantee facility should endeavor to give composite credit to the borrowers so that the borrowers obtain both term loan and working capital facilities from a single agency. If the service fee and the penal interest have fallen due on the same date, then the appropriation shall be made first towards service fee and then towards the penal interest and finally towards any other charges payable in respect of the eligible credit facility.