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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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After the approval comes through the business will have to pay the borrowers will have to pay the CGTMSE guarantee and 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. Credit facilities not eligible under the Scheme. The balance 25 per cent of the guaranteed amount will be paid on conclusion of recovery proceedings by the lending institution.

Schemee the event of schems of annual service fee by May 31 of that year or any other specified date, the guarantee under the scheme shall not be available to the lending institution unless the Trust agrees for schsme of guarantee and the lending institution pays penal interest on the service fee due and unpaid, with effect from the subsequent June 01, at four per cent over Bank Rate, per annum, or at such rates specified by the Trust from time to time, for the period of delay.

In the partial collateral security model, the MLIs will be allowed to obtain collateral security for svheme part of the credit facility, whereas the remaining part of the credit facility, up to a maximum of lakh, can be covered under Credit Guarantee Scheme of CGTMSE. CGTMSE will, however, have pari-passu charge on the primary security as well as on the collateral cgtmze provided by the borrower for the credit facility.

File all GST returns for your clients with automated data reconciliation – No download required. How can one opt for this scheme? Get done in 7 mins. 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.


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 January-March prior to expiry of the following scehme viz. cgttmse

CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises

From 10 lakh upto lakh. 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.

For the purposes of this Scheme. 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. 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.

Log In Sign Up. Plans start from Rs. 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. Maximum extent of Guarantee where credit facility is. The Trust may, on review of performance, remove any of the lending institution from the list of eligible institution. Every officer or other employee of the lending institution or the borrower, who is in a position to do so, shall make available to the officers of the Trust or SIDBI or the person appointed for the inspection as the case may be, the books of account and other records and information which are in his possession.

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.

Guarantee Fee and Annual Service Fee.

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 dcheme may be advised by the Trust.

Loans are also provided to borrowers who are located in the Northeastern States of India including Sikkim and Jammu and Kashmir. These industries form the very backbone of our Indian Economy.


MLIs are advised to take further action as contained in Section 13 4 of the above Act wherein a secured 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. Sikkim other than credit facility upto Rs. Above 5 lakh upto 50 lakh.

All other category of borrowers.

All proposals for sanction of guarantee approvals for credit facilities above Rs. Appropriation of amount received from the lending institutions.

The Board of Trustees of Credit Guarantee Fund Trust for Small Industries, having scbeme 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: Get a CA at affordable price. Agreement to be executed by the lending institution.

Where working capital alone is extended to the eligible borrower, the guarantee cover shall be for a period of 5 years or a block of 5 years, or for such period as may be specified by the trust in this behalf. Any amount found to have been paid scheeme excess would be refunded by the Trust. These are small-scale industries which require immunity and special protection to flourish.

CGTMSE | Credit Guarantee Fund Trust for Micro and Small Enterprises

On a claim being paid, the Trust shall be deemed to have been discharged from all its liabilities on account of the guarantee in force in respect of the borrower concerned. 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 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. The objectives of this fund are: