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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CGTMSE Scheme – Coverage of Collateral Free Loans to SME | Bank of Baroda

Proposals approved by the MLIs on or after December 8, will be eligible for the coverage upto Rs. The lender should cover the eligible credit facilities as soon as they are sanctioned. The lending institution shall, in particular, refrain from any act of omission or commission, either before or subsequent to invocation of cgtmsse, which may adversely affect the interest of the Trust as the guarantor.

List Of Member Lending Instiutions. All other category of borrowers. Micro and small enterprise which are operated and owned by women entrepreneurs. How to file GST Returns? Title and date of commencement.


The following credit facilities shall not be eligible for being guaranteed schdme the Scheme: Credit facilities not eligible under the Scheme. Log In Sign Up. Where subsequent to the Trust having released a sum to the lending institution towards the amount in default in accordance with the provisions contained in the Section 10 of this scheme, the lending institution recovers money subsequent to the recovery proceedings initiated by it, the same shall be deposited by the lending institution with the Trust, after adjusting towards the cost incurred by it for recovery of the amount.

Sikkim other than credit facility upto 5 lakh to micro enterprises. Loans are also provided to borrowers who are located in the Northeastern States of India including Sikkim and Jammu and Kashmir. In respect of any matter not specifically provided for in this Scheme, the Trust fgtmse make such supplementary or additional provisions or issue such instructions or clarifications as may be necessary for the purpose of the Scheme.


Credit facilities eligible under the 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.

However, notwithstanding the death or retirement of a partner where the borrower is a partnership firm or the death of one of the joint borrowers, if the lending institution is entitled to continue the credit facilities to the surviving partner or partners or the surviving borrower or borrowers, as the case may be and if the credit facilities have not already become non performing asset, the guarantee in respect of such credit facilities shall not to be deemed to be terminated as provided in this paragraph.

Get done in 7 mins. 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 Board of Trustees 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: List Of Member Lending Instiutions.

Get expert assistance in managing your business. The tenure of the guarantee is a block of 5 years.

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 schfme case may be, the books of account and other records and information which are in his possession.


Appropriation of amount realised by the lending agency in respect of a credit facility after the guarantee has been invoked. A lending institution shall not be entitled to a guarantee in respect of any eligible credit facility granted by it unless it has entered into vgtmse agreement with the Trust in such form as may be required by the Trust for covering by way of guarantee, under the Scheme all schemr eligible credit facilities granted by the lending institution, for which provision has been made in the Scheme.

Subject to the other provisions of the Scheme, the Trust undertakes, in relation to credit facilities extended to an eligible borrower from time to time by an eligible institution which has entered into the necessary agreement for this purpose with the Trust, to provide a guarantee on account of the said credit facilities. CGTMSE will, however, have pari-passu charge on the primary security as well as on the collateral security provided by the borrower for the cgtmsf facility.

CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises

Trust’s liability to be terminated in certain cases. Conditions imposed under the Scheme to be binding on the lending institution. Provided further that, as on the material date.

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 quarter viz. Guarantees by the Trust. Scheme has ended on Dec 31 All proposals for sanction of guarantee approvals for credit facilities above Rs. For the purposes of this Scheme.

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.