CGTMSE / (44) /10953                                                                             January 16, 2009

 

All Member Lending Institutions of CGTMSE

 

Circular No. 51 / 2008 - 09

Dear Sir,

 

Modification in extent of guarantee cover

under the Credit Guarantee Scheme (CGS)

 

We are happy to inform that in terms of Additional Economic Stimulus Package announced by Government of India on January 02, 2009,  it has been decided to increase the guarantee cover to 85% of credit facility upto Rs.5 lakh sanctioned to micro enterprises with effect from January 02, 2009. The consequential changes in the CGS are given below :-

 

Chapter IV - Clause 9( Para. 1)

Extent of the guarantee:

 

            The Trust shall provide guarantee as under :

Category

Maximum extent of Guarantee where credit facility is

 

Upto Rs.5 lakh

Above Rs.5 lakh upto Rs.50 lakh

Above Rs.50 lakh upto Rs.100 lakh

Micro Enterprises

85% of the amount in default subject to a maximum of Rs.4.25 lakh

 

75% of the amount in default subject to a maximum of

Rs.37.50 lakh

Rs.37.50 lakh plus 50% of amount in default above Rs.50 lakh subject to overall ceiling of Rs.62.50 lakh

Women entrepreneurs/  Units located in North East Region (incl. Sikkim) (other than credit facility upto Rs.5 lakh to micro enterprises)

 

 

80% of the amount in default subject to a maximum of Rs.40 lakh

Rs.40 lakh plus 50% of amount in default above Rs.50 lakh subject to overall ceiling of Rs.65 lakh

All other category of borrowers

75% of the amount in default subject to a maximum of Rs.37.50 lakh

Rs.37.50 lakh plus 50% of amount in default above Rs.50 lakh subject to overall ceiling of Rs.62.50 lakh

    - 2 -

 

    2.   All other terms and conditions of the CGS shall remain unchanged.

   3.   You are requested to advise your operating offices (Zonal / Branch Offices)    about the modification made to the Scheme as above.

 

Please acknowledge receipt.

 

Yours faithfully,

 

 

                                                                                                                                  Sd/-

[O.S.Vinod]

Chief Executive Officer