Availability of bank credit without the hassles of collaterals / third party guarantees would be a major source of support to the first generation entrepreneurs to realize their dream of setting up a unit of their own Micro and Small Enterprise (MSE). To promote this view, Ministry of Micro, Small & Medium Enterprises (MSME), Government of India launched Credit Guarantee Scheme (CGS) so as to strengthen credit delivery system and facilitate flow of credit to the MSE sector. For fulfilling the scheme, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
In association with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Bank offers collateral / third party guarantee free credit facility (both fund as well as non fund based) to new as well as existing Micro and Small Enterprise, including Service Enterprises, with a maximum credit cap of Rs.100 Lakhs (Rupees Hundred Lakhs only).
The guarantee cover available under the scheme is to the extent of 75% or 80% (applicable to Women/ units in North East Region including Sikkim) of the sanctioned amount of the credit facility, with a maximum guarantee cap of Rs.62.50 L or Rs. 65L. The extent of guarantee cover is 85% for micro enterprises for credit up to Rs.5 L.
Highlights
1.No collateral security insisted for loans up to 5 L applicable to all units under MSE (Micro & Small Enterprises) sector.
2.Giving boost to MSE sector with the support of credit guarantee scheme.
3.Facilitates collateral free credit and merit based lending up to limit of Rs.100 L.
4.Reasonable guarantee fee (upfront and annual service fee) as charged by CGTMSE
For more details contact any of our branches.