Organisation : CGTMSE Credit Guarantee Fund Trust for Micro and Small Enterprises
Facility : Credit Guarantee Scheme
Registration here : https://www.cgtmse.in/Home
Website : https://www.cgtmse.in/Home
Credit Guarantee Scheme :
The lending institution desirous to register with CGTMSE may submit an undertaking on a stamp paper of appropriate value to the registered office of the Trust.
Related : SIDBI Green Loan Scheme : www.statusin.in/20224.html
The following documents may be furnished in addition to the undertaking for registration purpose:
a) Annual reports for the preceding 3 years.
b) List of offices along with their addresses designated to operate the Credit Guarantee scheme with CGTMSE.
c) Name and designation of the designated officers to operate the scheme, together with their signatures.
Note:
Items b) and c) above may be provided subsequent to the registration of the lending institution, if so desired by the lending institution.
Who can register:
Only scheduled commercial banks are presently eligible to register with CGTMSE for operating the credit guarantee scheme.
Regional Rural Banks desirous to register with CGTMSE may send in complete details about their performance including:
** Annual Reports for the last 3 years
** Details of geographical areas of operation
** Average loan size
** Recovery performance, % of standard assets to total assets, Capital adequacy ratio.
Undertaking:
Please Click here to Download Undertaking and here to Download Adobe Acrobat Reader which is required to view and to print the file.
Stamp Value:
To be stamped as an agreement under the local Stamp Act, where the document is executed.
Registered Office:
The Head / Registered Office of the Credit Guarantee Trust –
The Chief Executive Officer,
Credit Guarantee Fund Trust for Micro and Small Enterprises,
SME Development Center(7th Floor)
C-11, G Block,
Bandra Kurla Complex,
Bandra (E),
Mumbai – 400 051
Tel No. : 26541803-07
Fax No. : 26541821
Eligible Lending Institutions :
All scheduled commercial banks and specified Regional Rural Banks, NSIC, NEDFi, SIDBI, which have entered into an agreement with the Trust for the purpose. The eligible lending Institutions, on entering with an agreement with CGTMSE, become Member Lending Institutions (MLIs) of CGTMSE.
Eligible Borrowers:
New as well as existing Micro and Small Enterprises.
Maximum Risk Cover:
Of the credit facilities extended by MLIs, Trust shall guarantee, in case of default by the borrower, up to 75 per cent (85% for select category of borrowers), of the defaulted principal amount in respect of term credit including interest on principal for one quarter and / or outstanding working capital advances (inclusive of interest), as on the date of account becoming NPA, or as on the date of filing the suit, whichever is lower.
Other charges such as penal interest, commitment charge, service charge, or any other levies/ expenses shall not qualify for the guarantee cover.
Rehabilitation assistance:
For the unit covered under CGTMSE and becoming sick due to factors beyond the control of management, assistance for rehabilitation extended by the lender could also be covered under the scheme provided the overall assistance is within the credit cap of Rs.100 lakh.
Non-Eligibility:
Any facility given on the basis of collateral security or third party guarantee shall be disqualified for coverage under the scheme. The Trust also reserves the right to reject any application for the guarantee cover, if it deems necessary.