What is Credit Guarantee Scheme for MSME Sector?-एमएसएमई क्षेत्र के लिए क्रेडिट गारंटी योजना

Credit Guarantee Fund Scheme

• The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme.

• Credit Guarantee is an Authorised Financial Services Provider No. 17691. So why take unnecessary risks, when for a nominal fee, bad debt can be eliminated? Simply insuring your debtor's payment risk with Credit Guarantee, you will be secure in the knowledge that you'll always be paid.

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CGTMSE Scheme Eligibility Criteria:

• The maximum credit facility is Rs. 50 lakhs for a guarantee cover not exceeding Rs. ...
• For credit facility above Rs. 50 lakhs, the guarantee cap is limited to Rs. ...
• Term credit for the entire outstanding amount on the date the loan is declared to be an NPA or on the date of filing a suit
• Small road and water transport loans that are approved by MLIs are eligible for cover under this scheme. All small business owners in this industry who are seeking a loan can ask the banks how to add the CGTMSE cover to their loan applications.

CGTMSE Scheme-Process of Loan Application:

1. Step 1 – Form the Business Organization. Forgetting the fund for a new business, you have to form the business organization first. ...
2. Step 2 – Prepare the Project Report or Business Plan. ...
3. Step 3 – Apply for the sanction of Bank Loan. ...
4. Step 4 – Get Coverage under CGTMSE Scheme.

CGTMSE Scheme-Application Fee:

• To cover the loan under the CGTMSE scheme, the borrower has to pay an additional guarantee fee and service charge in addition to the interest charged by the bank.

• Current CGTMSE guarantee fee is payable at the rate of 1.5%.

Scheme Benefits & Highlights:

• Fund and non-fund based (Letters of Credit, Bank Guarantee etc.) credit facilities up to Rs 200 lakh per eligible borrower are covered under the guarantee scheme provided they are extended on the project viability without collateral security or third party guarantee.
• 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 Rs 5 lakh. The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit from Rs 10 lakh to Rs 100 lakh per MSE borrower for retail trade activity.
• The extent of guarantee cover is 80%(i) Micro and Small Enterprises operated and/or owned by women; and (ii) all credits/loans in the North East Region (NER) for credit facilities upto Rs 50 lakh. 
• In case of default, Trust settles the claim up to 75% of the amount in default of the credit facility extended by the lending institution for credit facilities upto Rs 200 lakh.
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CGTMSE Member Lending Institution:

• The Banks / Financial Institutions, which are eligible under the scheme, are scheduled commercial banks (Public Sector Banks/Private Sector Banks/Foreign Banks)
• Under the scheme, the member lending institution which can be an NBFC also, who lend to the SME and MSME sector are eligible for a maximum credit cap of Rs. 2 crores, which in any case is meant to cover a large proportion of the loan amount.

Complete List of Banks and Members 

List of Member Lending Institutions (MLIs)
PUBLIC SECTOR BANKS (18 nos.)		PRIVATE SECTOR BANKS (21 nos.)		NON-BANKING FINANCIAL COMPANIES (18 nos.)
1	Allahabad Bank	1	Axis Bank	1	Ambit Finvest Private Ltd.
2	Andhra Bank	2	Catholic Syrian Bank	2	Bajaj Finance Ltd.
3	Bank of Baroda *	3	City Union Bank Ltd.	3	Capfloat Financial Services Private Limited
4	Bank of India	4	DCB Ltd.	4	Clix Capital Services Pvt. Ltd
5	Bank of Maharashtra	5	HDFC Bank Ltd.	5	ECL Finance Ltd.
6	Canara Bank	6	ICICI Bank Ltd.*	6	Epimoney Private Ltd. (FlexiLoans)
7	Central Bank of India	7	IDBI Bank Limited	7	Fortune Integrated Assets Finance Ltd.
8	Corporation Bank	8	IDFC First Bank Ltd.	8	Fullerton India Credit Company Ltd.
9	Indian Bank	9	IndusInd Bank Ltd.	9	Incred Financial Services Ltd.
10	Indian Overseas Bank	10	Karnataka Bank Ltd.	10	India Infoline Finance Ltd.
11	Oriental Bank of Commerce	11	Kotak Mahindra Bank Ltd.*	11	Indostar Capital Finance Ltd.
12	Punjab & Sind Bank	12	Lakshmi Vilas Bank Ltd.	12	Magma Fincorp Ltd.
13	Punjab National Bank	13	Tamilnad Mercantile Bank Ltd.	13	Mahindra & Mahindra Financial Services Ltd
14	State Bank of India*	14	The Dhanalakshmi Bank Ltd.	14	NeoGrowth Credit Private Ltd.
15	Syndicate Bank	15	The Federal Bank Ltd.	15	Tata Capital Financial Services Ltd.
16	UCO Bank	16	The Jammu & Kashmir Bank Ltd.	16	Tata Motors Finance Ltd.
17	Union Bank of India	17	The Karur Vysya Bank Ltd	17	Visage Holdings and Finance Private Ltd. (Kinara Capital)
18	United Bank of India	18	The Nainital Bank Ltd.	18	Volvo Financial Services (India) Private Ltd.
		19	The Ratnakar Bank Ltd.	SCHEDULED URBAN CO-OP BANKS (3 nos.)
		20	The South Indian Bank Ltd.	1	Saraswat Co-operative Bank Ltd
		21	YES Bank Ltd.	2	TJSB Sahakari Bank Ltd
				3	NKGSB COOP BANK LTD
FOREIGN BANK (5 nos.)		SMALL FINANCE BANK (5 No.)		FINANCIAL INSTITUTIONS (9 nos.)
1	Bank of Bahrain and Kuwait	1	AU Small Finance Bank Ltd.	1	Andhra Pradesh State Financial Corporation
2	Barclays Bank PLC	2	Equitas Small Finance Bank	2	Delhi Financial Corporation
3	DBS Bank	3	ESAF Small Finance Bank Ltd.	3	Export Import Bank of India
4	Deutsche Bank	4	Suryoday Small Finace Bank Ltd.	4	Jammu & Kashmir Development Finance Corporation Ltd
5	Standard Chartered Bank	5	Ujjivan Small Finance Bank	5	Kerala Financial Corporation
				6	National Small Industries Corporation Ltd.
				7	North Eastern Development Finance Corporation Ltd.
				8	Small Industries Development Bank of India
				9	The Tamil Nadu Industrial Investment Corporation Ltd
REGIONAL RURAL BANKS (51 nos.)
1	Allahabad UP Gramin Bank	2	Andhra Pradesh Grameena Vikas Bank	3	Andhra Pragathi Grameena Bank
4	Assam Gramin Vikash Bank	5	Bangiya Gramin Vikash Bank	6	Baroda Gujarat Gramin Bank
7	Baroda Rajasthan Kshetriya Gramin Bank	8	Baroda Uttar Pradesh Gramin Bank	9	Bihar Gramin Bank
10	Central Madhya Pradesh Gramin Bank	11	Chaitanya Godavari Grameena Bank	12	Chhattisgarh Rajya Gramin Bank
13	Dena Gujarat Gramin Bank	14	Gramin Bank Of Aryavart	15	Himachal Pradesh Gramin Bank
16	J & K Grameen Bank	17	Jharkhand Gramin Bank	18	Karnataka Vikas Grameena Bank
19	Kashi Gomti Samyut Gramin Bank	20	Kaveri Grameena Bank	21	Kerala Gramin Bank
22	Langpi Dehangi Rural Bank	23	Madhya Bihar Gramin Bank	24	Madhyanchal Gramin Bank
25	Maharashtra Gramin Bank	26	Malwa Gramin Bank	27	Meghalaya Rural Bank
28	Mizoram Rural Bank	29	Narmada Jhabua Gramin Bank	30	Odisha Gramya Bank
31	Pallavan Grama Bank	32	Pandyan Grama Bank	33	Pragathi Krishna Gramin Bank
34	Prathama Bank	35	Puduvai Bharathiyar Grama Bank	36	Punjab Gramin Bank
37	Purvanchal Bank	38	Rajasthan Marudhara Gramin Bank	39	Saptagiri Grameena Bank
40	Sarva Haryana Gramin Bank	41	Sarva U.P. Gramin Bank	42	Saurashtra Gramin Bank
43	Sutlej Gramin Bank	44	Telangana Grameena Bank	45	Tripura Gramin Bank
46	Utkal Grameen Bank	47	Uttar Banga Kshetriya Gramin Bank	48	Uttar Bihar Gramin Bank
49	Uttarakhand Gramin Bank	50	Vananchal Gramin Bank	51	Vidharbha Konkan Gramin Bank
Note : Consequent upon amalgamation of number of Regional Rural banks (RRBs) beginning FY 2012-13 at the instance of Ministry of Finance, Govt. of India, the total number of RRBs reduced from 73 to 51. All six Associate banks of State bank of India have merged with it.(Bharatiya Mahila Bank Ltd., SBBJ,SBP,SBM,SBH,SBT) ING Vysya Bank Ltd. merged with Kotak Mahindra Bank Ltd. The Bank of Rajasthan Ltd. merged with ICICI Bank Ltd. Dena Bank & Vijaya Bank merged with Bank of Baroda