CGTSI/(44)  

                           December 10,2007 

 

 

All Member Lending Institutions of CGTSI

 

 

 

Circular No. 41 / 2007-08

 

 

Dear Sir/Madam,

 

 

 

One time extension of time period for lodgement of application for guarantee cover under
Credit Guarantee Scheme (CGS)

 

 

 

As you are aware, in July 02, 2007 the loan limit under the CGS was increased from Rs.25 lakh to Rs.50 lakh. CGTMSE has been receiving representations from some of the operating offices of Member Lending Institutions (MLIs) for providing one-time exemption in the time limit for lodging the online applications for guarantee cover as the proposals between Rs. 25 lakh and Rs. 50 lakh were earlier not eligible for coverage. Some of the MLIs have also expressed the desire to cover smaller loans, particularly in North Eastern States, in view of delays in obtaining requisite information from far flung branches. Keeping in view the same, it has been decided to provide another opportunity to the MLIs to lodge the otherwise time barred applications and to give them a one time exemption to facilitate the lodgement of all applications across the country subject to the following:

i)                  The one-time exemption would be applicable for credit facilities sanctioned between January 01, 2007 and June 30, 2007.

ii)             The applications should be lodged/ re-lodged on or before March 31, 2008.                                              

The MLI to confirm in the remark column at the bottom of the application form as under:

' that the credit facility sanctioned is a standard asset and is not a stressed asset, it is regular with no defaults as on the date of lodgement of the application, under the extended period upto June 30, 2007 and no reschedulements have been granted in the account.'

MLIs are further advised that the above extension is a one time measure and no further exemption would be available to them. Henceforth, the application(s) would have to be lodged with CGTMSE within the stipulated time. We request you to kindly bring this to the notice of the operating offices (Zonal / Branch Offices) of your Bank/ Institution and solicit your cooperation in covering maximum proposals under the Scheme.

         Thanking you,

 

 

 

 

 

Yours faithfully,

 

Sd/- 

 

(P.M.Radhakrishnan)

Deputy General Manager