Page 47 - Banking Finance February 2021

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university, training partners affiliated to National Skill
Development Corporation (NSDC)/Sector Skill Councils, State
Skill Mission, State Skill Corporation, preferably leading to a
certificate / diploma / degree issued by such organization
as per National Skill Qualification Framework (NSQF). The
Government of India / State Governments may, from time
to time, notify institutes/organizations for the purpose.

Courses run by above mentioned Training Institutes aligned
to National Skill Qualification Framework (NSQF) shall be
covered by the Skill Loan. There is no minimum course
duration.
eligible claim amount at the prevailing Bank Rate for the
Extent of the guarantee- The Fund shall provide guarantee period of delay beyond 30 days. The balance 25% of the
cover to the extent of 75% of the amount in default. The guaranteed amount will be paid after obtaining a certificate
Fund reserves the right to modify the same. The guarantee from the Member Lending Institution (MLI) that all avenues
cover will commence from the date of payment of guarantee for recovering the amount have been exhausted. On a claim
fee and shall run through the agreed tenure of the Skill being paid, NCGTC / the Fund shall be deemed to have been
Loans. discharged from all its liabilities on account of the guarantee
in force in respect of the borrower concerned.
Any Claim under the Credit Guarantee Scheme for Skill
Development would be settled at 100 % of the guaranteed 3) Credit Guarantee Fund Scheme for Factoring
amount at one go, subject to the receipt of a certificate (CGFSF)
from the MLI to the effect that all avenues of recovering The Credit Guarantee Fund Scheme for Factoring (CGFSF)
the amount in default have been exhausted; that there is
shall be confined to domestic factoring of receivables of
no further scope for recovering the default amount and that MSMEs in India.
the claim is found in order and complete in all respects.
Exposure Limits:- The exposure limit for purchaser would be
2) Credit Guarantee Fund scheme for Education up to 10% (Relaxable up to 20% in case of AAA rated
loans (CGFSEL) purchasers) of the corpus of Credit Guarantee Corpus Fund
Guarantees for Education Loans by the member banks of for Factoring as per the last audited figures for factoring
IBA up to Rs. 7.5 lakh extended without collateral or third- 'without recourse' only.
party guarantee and the fund has a Target of 10 lakh loans
to be guaranteed in a year. Credit guarantees cover on the amount in default covering
factoring transactions [assistance extended by factors to
Extent of the guarantee- The Fund shall provide guarantee MSMEs] as per Factoring Regulations Act 2011 is detailed
cover to the extent of 75% of the amount in default. The here under:
Fund reserves the right to modify the same. The guarantee Y First loss of 10% of the amount in default to be borne
cover will commence from the date of payment of guarantee by Factors.
fee and shall run through the agreed tenure of the
Y The remaining 90% of the amount in default will be
Education Loan.
borne by NCGTC and Factors in the ratio of 2:1
respectively.
NCGTC shall pay 75 per cent of the guaranteed amount on
preferring of eligible claim by the lending institution, within Y Only the assigned factored debts would be covered
under guarantee scheme.
30 days, subject to the claim being otherwise found in order
and complete in all respects. Y The guarantee cover will commence from the date of
payment of guarantee fee and shall run through the
NCGTC shall pay to the lending institution interest on the currency of the factoring facility.

BANKING FINANCE | FEBRUARY | 2021 | 47