Monica Malik Instagram – The Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE) is a trust created by the Government of India that helps businesses access collateral-free loans. The scheme provides credit guarantees to financial institutions that offer loans, which used to be up to Rs. 2 crores but has now been increased to Rs. 5 crores.
👉 Eligible Activities:
● Manufacturing and services, including retail trade, are allowed.
● However, educational and training institutions, self-help groups (SHGs), and agriculture-related activities cannot apply.
👉 Loan Amount:
● Micro and small enterprises (MSEs) can obtain loans up to Rs. 5 Crore.
● Regional rural banks (RRBs) and select financial institutions can offer loans up to Rs. 50 lakh.
👉 Guarantee Coverage:
● Loan coverage ranges from 75% to 85%, but for retail activities, it’s 50%.
👉 Eligible Member Lending Institutions:
● More than 100 types of institutions, including public sector banks (PSUs), non-banking financial companies (NBFCs), RRBs, private banks, small urban cooperative banks (SUCBs), financial institutions (FIs), small finance banks (SFBs), and foreign banks.
👉 Annual Guarantee Fee for Amounts up to 1 Crore:
● The fee has been revised from 2% to as low as 0.37%.
#loan #business #collateral #education #sme #govt #government #bank #loans #easyloan #getmoney #earnmoney #businessman #businesswoman #reelkarofeelkaro #explore #prettymuchfinance | Posted on 27/Sep/2023 12:40:57
