Credit Guarantee Schemes for Banks (CGS-I) Credit Guarantee Schemes for Banks (CGS-I)
1. Will any guarantee fee be charged under the Scheme by CGTMSE?
Yes. 1.50% per annum on the guaranteed amount on outstanding basis.
2. Whether service fee or any other fee would be charged in addition to the guarantee fee?
No. There is no service fee or any other charge.
3. Whether Guarantee Fee is payable for NPA or claim lodged cases?
Yes, Guarantee Fee is payable for NPA cases / claim lodged cases, till the settlement of first claim.
4. What is the process to be carried out before lodgement of claim ?
Before lodgement of claim application with CGTMSE, the MLI needs to initiate legal action post NPA or default.
1. Who are the eligible Member Lending Institutions (MLIs) under the Scheme?
All the Member Lending Institutions (MLIs) registered under CGS-I of the Credit Guarantee Scheme for Micro and Small Enterprises.
What is the maximum sub-debt amount eligible under the Scheme?
Under the Scheme, Promoter(s) of the MSME unit will be given credit facility equal to 50% of his/her stake in the MSME entity (equity plus debt) or ₹75 lakh whichever is lower as per last audited Balance Sheet.
Illustration 1 : If promoters have invested ₹100 lakh as equity/debt in a company, then 50% of ₹100 lakh, i.e. ₹50 lakh is eligible amount under sub-debt. .
Illustration 2 : If promoters have invested ₹700 lakh as equity/debt in a company, then 50% of ₹700 lakh is ₹350 lakh. However, eligible amount under sub-debt would be ₹75 lakh.