CGTSI/ (44)/570

August 18, 2003

All the Member Lending Institutions (MLIs) of CGTSI

Circular No. 14 / 2003-04

Dear Sir / Madam,

Credit Guarantee Scheme (CGFSI) - Clarifications

CGTSI has been receiving queries from the Operating Offices of Member Lending Institutions (MLIs) to clarify whether existing SSI units already enjoying credit facilities against collateral security and / or third party guarantee are eligible under Guarantee Scheme for the additional credit facilities sanctioned to them without collateral security and / or third party guarantee. The matter was considered and it has been decided as under-

The decision to release the collateral security and / or third party guarantee in respect of the existing credit facilities extended to the eligible SSI units have been left to the discretion of the respective bank / lending institution (MLI). The additional credit facilities sanctioned upto Rs. 25 lakh per borrower, subsequently, without collateral security and / or third party guarantee to such SSI units, can be covered under the Guarantee Scheme.

The above modification in CGFSI shall come into effect from September 01, 2003.

We request you to kindly bring this modification to the notice of all the Zonal / Regional / Branch offices of your Bank / Institution.

Thanking you,

 

Yours faithfully,

Sd/-

(S N Sadhwani )

Dy. General Manager