CURRENT AFFAIRS

Detailed explanation-1: -Minister of MSME, Shri Nitin Gadkari today launched the Credit Guarantee Scheme for Sub-ordinate Debt (CGSSD) which is also called “Distressed Assets Fund–Sub-ordinate Debt for MSMEs”. As per the Scheme, the guarantee cover worth Rs.

Detailed explanation-2: -2. 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.

Detailed explanation-3: -The objective of the scheme is to provide personal loan through banks to the promoters of stressed MSMEs for infusion as equity / quasi equity in the business eligible for restructuring, as per RBI guidelines for restructuring of stressed MSME advances.

Detailed explanation-4: -Explanation: ‘Credit guarantee scheme for subordinate debt (CGSSD)’ is implemented by the Ministry of MSME. The Ministry has extended the CGSSD by one more year till March 31, 2023.

Detailed explanation-5: -CGTMSE was set up by Government of India and SIDBI in August 2000 for extending guarantee cover to collateral-free loans to MSE units upto Rs. 1 crore per borrower.