Govt Schemes and Programs

Name of Scheme

Credit Guarantee Fund Scheme for Micro and Small Enterprises

Type of Scheme

Microfinance

Sector

Small scale industry

Name of Ministry

Ministry of Micro, Small and Medium Enterprise

About the Scheme

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises(Ministry of Micro, Small and Medium Enterprise, n.d.)

Benefits Under the Scheme

Collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The guarantee cover available under the scheme is to the extent of maximum 85% of the sanctioned amount of the credit facility.

Eligibility Criteria

Existing and the new enterprises are eligible to be covered under the scheme. The credit facilities which are eligible to be covered under the scheme are both term loans and/or working capital facility up to Rs.100 lakh per borrowing unit, extended without any collateral security and / or third party guarantee, to a new or existing micro and small enterprise. For those units covered under the guaranteescheme, which may become sick owing to factors beyond the control of management, rehabilitation assistance extended by the lender could also be covered under the guarantee scheme. Any credit facility in respect of which risks are additionally covered under a scheme, operated by Government or other agencies, will not be eligible for coverage under the scheme. (DCMSME, not dated)

Concerned Agency Institutions

1) MSME-Development Institute(DI) 2)MSME-DI

Name Of Person

n.a.

Designation

n.a.

Address

1)Patilputra Industrial Estate, Patna -800 013. Bihar 2)Institute,Goshala Road, P.O. Ramna, Muzaffarpur -842 002.

Email

1) dcdi-patna@dcmsme.gov.in 2)dcdi-mzfpur@dcmsme.gov.in

Phone

1)Ph :0612-2262719 , 0612-2262186 , 0612- 2262208 2) 0621-2282486

Fax

1)0612-2261677 2)0612-2284425

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