In respect of CGTMSE (Credit Guarantee fund Trust for Micro and Small Enterprises) No collateral and no third party guarantee for fund based and non fund based credit facilities up to.....

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

In respect of CGTMSE (Credit Guarantee fund Trust for Micro and Small Enterprises) No collateral and no third party guarantee for fund based and non fund based credit facilities up to____

A	Rs. 10.00 lakhs
B	Rs. 5.00 lakhs
C	Rs.100 lakhs
D	Rs. 5 lakhs

Explanation:

Detailed explanation-1: -Needless to say, the credit facility extended to a borrower should be without any collateral security and/or third party guarantee.

Detailed explanation-2: -The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility. The extent of guarantee cover is 85% for micro enterprises for credit up to 5 lakh.

Detailed explanation-3: -ii. Working capital facility:-Outstanding working capital advance (inclusive of interest up to the date of NPA). Other charges such as penal interest, commitment charge, service charge or any other levies / expenses shall not qualify for the guarantee cover.

Detailed explanation-4: -The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector.

There is 1 question to complete.