CGTMSE | How To Apply For CGTMSE | Eligibility Criteria For CGTMSE |
CGTMSE- The MSME 2006 Act provides special protection to micro, medium, and small enterprises. These small-scale industries need immunity and special protection to flourish. These are the backbone of our Indian economy.
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is one of the government-sponsored schemes for MSMEs. Through this article, we will provide you detailed information about this scheme.
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)
The whole idea behind this trust is to provide financial support to these industries without any third-party guarantee / or collateral. These schemes assure the lenders that in the event of default by them, the trust will be provided with a ratio of 50/75/80/85 percent of the amount covered by the trust. The objectives of this fund are:
- To examine the financial feasibility of projects of these companies
- T0 Give term loan and overall loan scheme
According to this plan, Rs. 200 lakhs can be given to MSMEs. Special priority is given to eligible women entrepreneurs for this scheme. Loans are also provided to borrowers who are located in the northeastern states of India including Sikkim and Jammu and Kashmir.
Bank Are Associated With CGTMSE
Banks that can act as qualified lenders are:
- NABARD has classified some Regional Rural Banks under the “Sustainable Viable” category. These banks can act as Eligible Bankers.
- Scheduled Commercial Banks, which may be either Public or Private Sector or a Foreign bank.
- There are 133 eligible lending institutions registered as MLI’s of the TRUST.
- National Small Industries Corporation (NSIC), North Eastern Development Finance Corporation (NEDFI)
- The Tamil Nadu Industrial Investment Corporation Ltd.
- Delhi Financial Corporation
- Kerala Financial Corporation
- Small Industries Development Bank of India (SIDBI)
- Jammu & Kashmir Development Finance Corporation Ltd.
- Export-Import Bank of India
- 73 Regional Rural Banks
- 21 Private Sector Banks
- 26 Public Sector Banks
- 4 Foreign Banks
The extent of the Cover CGTMSE
The extent of cover is up to 80% for –
- Micro and Small Enterprises Owned and Owned by Women Entrepreneurs
- All credits or loans given to the North-Eastern states of India including the state of Sikkim.
In case of default, the trust will pay claims up to 75% or 80% of the amount, which will not be paid up to the limit cap of Rs. 50 lakhs. For an amount above Rs. 50 lakhs to Rs. 200 Lakh Guarantee Cover is reduced by 50%.
Who can Avail of CGTMSE
Micro, Small and Medium Enterprises as well as new enterprises that are currently operational:-
a) Service activity
b) Manufacturing activity, Except:
1) Educational institutions
2) Training institutes
3) Retail business
4) Self-help group
It is also now available for selected NBFCs.
Fee Charges By CGTMSE
The approved amount is 1% p.a percent of the fees charged by the trust fund:
- 0.75% – For credit up to Rs. 5 lakhs
- Rs. 0.85% for credit above. 5 lakhs but Rs. One hundred million
The maximum amount of credit guarantee available under this scheme is Rs 2.5 lakh / Rs 75 lakh with scheme5 / scheme 0%. For credit facility up to 50 lakhs. Rupee. The percentage guarantee for micro-enterprise is 5% for the amount of Rs. 5 lakhs. The percentage of guarantee is 50% of the amount so sanctioned for a credit of above Rs. 50 Lakhs with a maximum limit of Rs. 100 Lakhs. The tenure of the guarantee is a block of 5 years.
How To Apply For CGTMSE
The procedure to applies for this scheme is explained below:
- The first and important step to take advantage of this scheme is to prepare a proper business plan, financially and otherwise, with all the details. The business model should be one that explains the feasibility of the project.
- After completing the business model, you have to contact the lender bank, after completing this, you have to submit the application with the business model to the bank.
- The bank will investigate and verify all the details of the application and the project model submitted by you. After verification by the bank, the bank will send the application to CGFTMSE where the process of checking will be repeated. If this is approved, CGFTMSE will direct the bank to release funds for the business.
- For More Details, You Follow This LINK
Contact Details For CGTMSE
1) CEO, CGT SME
Email: [email protected]
2) JDC, O/o DC, MSME
Email: [email protected]
Interest Subsidy Eligibility Certificate (ISEC)
|The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an important mechanism of funding the khadi program undertaken by khadi institutions. It was introduced to mobilize funds from banking institutions for filling the gap between the actual fund requirements and the availability of funds from budgetary sources.
Nature of assistance of this Scheme
Under the ISEC Scheme, credit at a concessional rate of interest of 4% per annum for working capital, is made available as per the requirement of the institutions. The difference between the actual lending rate and 4% is paid by the Central Government through KVIC to the lending banks
Who can apply For This Scheme
The Khadi institutions, having valid Khadi certificates and sanctioned the khadi program. The Institutions registered with the KVIC/State Khadi and Village Industries Boards (KVIBs) can avail of financing under the ISEC Scheme, the Scheme supports only the khadi and the poly-Vastra sector.
How to Apply For This Scheme
The Khadi institutions will apply to the financing bank for working capital along with the ISEC certificate issued by KVIC. Based on the working capital sanctioned, the financing bank will raise the reimbursement claim to the nodal branch for the differential interest rate over and above 4%.
Dy. CEO, KVIC
Email: [email protected]
For More Details Download The ISEC-Guideline