CGTMSE / (44)/10573  

                           December 08, 2008

All Member Lending Institutions of CGTMSE

 

 

 

Circular No. 48 / 2008- 09

Dear Sir/Madam,

 

 

 

Credit Guarantee Scheme (CGS) - Modification in the

procedure for Invocation of Guarantee and Preferment of Claim.

 

 

 

         We are happy to inform that in terms of the Economic Stimulus Package announced by Government of India on December 07, 2008, it has been decided, with immediate effect, to reduce the lock-in period from 24 months to 18 months for settlement of claim.

         Accordingly, Member Lending Institutions (MLIs) are permitted to lodge claims for invocation of guarantee in respect of accounts which have turned NPA after a lock-in period of 18 months in place of the present 24 months for settlement of claim. Consequently clause No. 2 (b) of Circular No. 11 / 2003-04 has been modified as under:

         "The lock-in period of 18 months from either the date of last disbursement of the loan to the borrower or the date of payment of guarantee fee in respect of the credit facility to the borrower, whichever is later, has been elapsed."

2. All other terms and conditions of the Credit Guarantee Scheme remain unchanged. Please bring the contents of the circular to the notice of the operating offices (Zonal / Branch Offices) of your Bank/ Institution.

3. Please acknowledge receipt.

        

         ,

 

 

 

 

 

Yours faithfully,

 

Sd/- 

 

[O.S.Vinod]

Chief Executive Officer