August 14, 2003

All the operating offices of Member Lending Institutions (MLIs) of CGTSI

Circular No. 13/ 2003-04

Dear Sir / Madam,

Credit Guarantee Fund Scheme for Small Industries (CGFSI)-

i) Removal of Minimum credit limit for Guarantee Cover

ii) Inclusion of Small Scale Service & Business (Industry Related) Enterprises (SSSBEs)

Please refer to our Circular No. 8 /2002-03 notified vide our letter No. CGTSI/ (44)/1094 dated December 12, 2002 specifying a minimum credit limit of above Rs 5 lakh for providing guarantee cover under CGFSI. The decision has since been reviewed and it has been decided to withdraw the minimum ceiling on credit limit for coverage under CGFSI.

Further, we inform that the scope of CGFSI has since been widened as under -

"Presently new and existing SSI units engaged in manufacturing activity or in information technology or in software industry are eligible under CGFSI. Effective September 01, 2003, the credit facilities upto Rs. 25 lakh sanctioned without collateral security and / or third party guarantee by the MLIs to the new and existing Small Scale Service & Business (Industry Related) Enterprises ( SSSBEs ) have also been made eligible for coverage under the scheme."

The above modifications in CGFSI would come into effect from September 01, 2003.

We request you to kindly bring the above modifications to the notice of all the Zonal / Regional / Branch offices of your Bank / Institution. We seek the cooperation of all the Member Lending Institutions of CGTSI in stepping up flow of collateral free credit to SSI sector

Thanking you,


Yours faithfully,


(N. Venkatasubramanyan)

Chief Executive Officer