Here is a list of subtopics without any description for Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE):
- About CGTMSE
- Eligibility Criteria
- Loan Amount
- Interest Rate
- Repayment Terms
- Documentation Required
- Application Process
- Contact Details
- FAQs
The Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE) is a government-backed scheme that provides credit guarantees to banks and financial institutions for loans extended to micro and small enterprises (MSEs). The scheme was launched in 2000 with the objective of promoting EntrepreneurshipEntrepreneurship and economic growth by providing access to finance for MSEs.
CGTMSE provides a guarantee cover of up to 85% of the loan amount, which helps banks and financial institutions to reduce their risk and lend more to MSEs. The scheme is open to all MSEs with a turnover of up to Rs. 100 crore, and the loan amount can be up to Rs. 1 crore. The interest rate on loans under CGTMSE is linked to the Prime Lending Rate (PLR) of the bank, and the repayment terms are up to 7 years.
To avail a loan under CGTMSE, an MSE needs to apply to a bank or financial institution that is a member of the scheme. The application form can be downloaded from the CGTMSE website. The applicant needs to provide the following documents along with the application form:
- Proof of identity (PAN card, Aadhaar card, etc.)
- Proof of address (electricity bill, water bill, etc.)
- Latest financial statements (balance sheet, profit and loss account)
- Business plan
The bank or financial institution will assess the application and sanction the loan if it is found to be in order. The loan amount will be disbursed directly to the MSE’s bank account.
The repayment of the loan is made to the bank or financial institution, which will then pass on the repayments to CGTMSE. CGTMSE will reimburse the bank or financial institution in case of default by the MSE.
CGTMSE is a very helpful scheme for MSEs as it provides them with access to finance at a lower interest rate and with longer repayment terms. The scheme has helped to promote entrepreneurship and economic growth in India.
Here are some frequently asked questions about CGTMSE:
What is CGTMSE?
CGTMSE is a government-backed scheme that provides credit guarantees to banks and financial institutions for loans extended to micro and small enterprises (MSEs).Who is eligible for a loan under CGTMSE?
All MSEs with a turnover of up to Rs. 100 crore are eligible for a loan under CGTMSE.What is the maximum loan amount that can be availed under CGTMSE?
The maximum loan amount that can be availed under CGTMSE is Rs. 1 crore.What is the interest rate on loans under CGTMSE?
The interest rate on loans under CGTMSE is linked to the Prime Lending Rate (PLR) of the bank.What are the repayment terms for loans under CGTMSE?
The repayment terms for loans under CGTMSE are up to 7 years.What documents are required to apply for a loan under CGTMSE?
The following documents are required to apply for a loan under CGTMSE:Proof of identity (PAN card, Aadhaar card, etc.)
- Proof of address (electricity bill, water bill, etc.)
- Latest financial statements (balance sheet, profit and loss account)
Business plan
How can I apply for a loan under CGTMSE?
You can apply for a loan under CGTMSE by applying to a bank or financial institution that is a member of the scheme. The application form can be downloaded from the CGTMSE website.What is the processing time for a loan under CGTMSE?
The processing time for a loan under CGTMSE is usually 10-15 days.What is the disbursement process for a loan under CGTMSE?
The loan amount will be disbursed directly to the MSE’s bank account.What is the repayment process for a loan under CGTMSE?
The repayment of the loan is made to the bank or financial institution, which will then pass on the repayments to CGTMSE. CGTMSE will reimburse the bank or financial institution in case of default by the MSE.What are the benefits of a loan under CGTMSE?
The benefits of a loan under CGTMSE include:Access to finance at a lower interest rate
- Longer repayment terms
Government guarantee
What are the risks associated with a loan under CGTMSE?
The risks associated with a loan under CGTMSE include:Default by the MSE
- Interest rate risk
Currency risk
What is the contact information for CGTMSE?
The contact information for CGTMSE is:
Credit Guarantee Trust Fund for Micro & Small Enterprises
11, Institutional Area, Lodhi Road
New Delhi – 110
nan
Question 1
CGTMSE is a government-backed scheme that provides loans to micro and small enterprises. Which of the following is not a requirement for eligibility?
(A) The enterprise must be registered with the Ministry of Micro, Small and Medium Enterprises.
(B) The enterprise must have a turnover of less than Rs. 100 crore.
(CC) The enterprise must be in operation for at least one year.
(D) The enterprise must have a minimum net worth of Rs. 10 lakh.
Answer
(D)
The minimum net worth requirement for eligibility under CGTMSE is Rs. 5 lakh.
Question 2
The maximum loan amount that can be sanctioned under CGTMSE is:
(A) Rs. 10 lakh.
(B) Rs. 20 lakh.
(C) Rs. 30 lakh.
(D) Rs. 50 lakh.
Answer
(C)
The maximum loan amount that can be sanctioned under CGTMSE is Rs. 30 lakh.
Question 3
The interest rate on loans under CGTMSE is:
(A) 6% per annum.
(B) 7% per annum.
(C) 8% per annum.
(D) 9% per annum.
Answer
(B)
The interest rate on loans under CGTMSE is 7% per annum.
Question 4
The repayment terms for loans under CGTMSE are:
(A) 3 years.
(B) 5 years.
(C) 7 years.
(D) 10 years.
Answer
(C)
The repayment terms for loans under CGTMSE are 7 years.
Question 5
The following documents are required for applying for a loan under CGTMSE:
(A) Proof of identity.
(B) Proof of address.
(C) Audited financial statements.
(D) All of the above.
Answer
(D)
All of the above documents are required for applying for a loan under CGTMSE.
Question 6
The application process for a loan under CGTMSE can be initiated online or offline. Which of the following is not a step in the online application process?
(A) Create an account on the CGTMSE website.
(B) Upload the required documents.
(C) Fill out the application form.
(D) Pay the application fee.
Answer
(D)
There is no application fee for applying for a loan under CGTMSE.
Question 7
The contact details for CGTMSE are:
(A) 1800-11-4444.
(B) 1800-11-5555.
(C) 1800-11-6666.
(D) 1800-11-7777.
Answer
(A)
The contact number for CGTMSE is 1800-11-4444.
Question 8
The following are some of the frequently asked questions about CGTMSE:
(A) What is the maximum loan amount that can be sanctioned under CGTMSE?
(B) What is the interest rate on loans under CGTMSE?
(C) What are the repayment terms for loans under CGTMSE?
(D) All of the above.
Answer
(D)
All of the above are frequently asked questions about CGTMSE.