CGTSI/(44)/ 1075

October 15,2007

All Member Lending Institutions of CGTSI

Circular No. 40 / 2007-08

Dear Sir/Madam,

Financial Sector Plan for the State of Sikkim - Modifications in the Credit Guarantee Scheme

Based on the recommendations of the Task Force on the Financial Sector Plan for Sikkim , it has been decided as under:

i) The up front Guarantee Fee will be reduced by 50% from 1.5% to 0.75% for all loans in the North Eastern Region including the state of Sikkim .

ii) The extent of guarantee cover will be raised from 75% to 80% for all loans in the North Eastern Region including the state of Sikkim .

The consequential changes in the Scheme are given in the Annexure. You are requested to advise your operating offices (Zonal / Branch Offices) about the modification made to the Scheme as above.

We solicit your cooperation in covering maximum proposals under the Scheme in the the state of Sikkim .

Thanking you,

Yours faithfully,

Sd/-

(P.M.Radhakrishnan)

Deputy General Manager