Ref. No. CGTMSE/44/5616                                                   September 03, 2014

 

 

The SME/Priority Sector Heads of all Member Lending Institutions

 

Circular No. 83/2014-15

 

Madam / Dear Sir,

 

Special focus on coverage of young

entrepreneurs under the Credit Guarantee Scheme (CGS)

 

 

            It has been decided to open a separate window under the CGS for new entrepreneurs specifically targeting IITs, Engineering Colleges, AICTE recognised Management Institutes or other Management Institutes and Universities to encourage growth of entrepreneurship in the country.

            This will be a separate vertical within CGTMSE and contribution to this fund will not be fungible vis-à-vis the other funds of CGTMSE.  It is proposed to start this fund with an initial corpus of Rs.20 crore, which can be leveraged up to Rs.300 crore of Credit Guarantee Cover.  As and when more funds are provided up to a maximum of Rs.50 crore, these shall be leveraged in a similar manner to provide credit guarantee for collateral free and/or third party guarantee free loans to such new entrepreneurs.

            While MLIs are encouraged to make active use of this window, they may put in place necessary precautions / safeguards for screening of such credit proposals.  MLIs may also kindly indicate in the application form that they are applying under this particular window.

            The contents of the Circular may be brought to the notice of all your offices.

 

Yours faithfully,

 

 

Sd/-

(S. S. Bakshee)

General Manager