Ref. No. CGTMSE /44/5135                                                      August 14, 2014

 

 

The SME/Priority Sector Heads of all Member Lending Institutions

 

 

Circular No. 81/2014-15

 

Dear Sir,

 

Modifications in existing guidelines for payment of

Annual Service Fee/ Annual Guarantee Fee

 

In partial modification of existing provision of Credit Guarantee Scheme (CGS) at para 8 (ii), Chapter III with regard to payment of Guarantee Fee (GF) & Annual Service Fee (ASF), it has now been decided that the ASF/ Annual Guarantee Fee (AGF), in lieu of ASF, shall be paid by the lending institutions within 60 days from the date of demand by CGTMSE even if thereby the last date of payment of ASF/AGF goes beyond May 31 of that particular FY.  The other provisions of the scheme with regard to accepting the applicable ASF/AGF beyond the stipulated date with applicable penal interest in case of only standard/regular and stress-free accounts and adjustment of unpaid ASF/AGF from out of the claim proceeds remain unchanged.

 

Thanking you.                                       

                              

  Yours faithfully,

            

Sd/-

     (S.S. Bakshee)

General Manager