Page 49 - Banking Finance February 2021

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Borrower accounts should be less than 60 days past due as the scheme, Government of India and SIDBI set up the
on 29th February, 2020 in order to be eligible under the Credit Guarantee Fund Trust for Micro and Small Enterprises
Scheme. For the purpose of this Scheme, Business (CGTMSE).
Enterprises / MSMEs would also include loans covered under
Pradhan Mantri Mudra Yojana (PMMY). The guarantee cover available under the scheme is to the
extent of 50%/ 75% / 80% & 85% of the sanctioned amount
Repayment Tenure- Maximum tenure of 4 years from the of the credit facility. The extent of guarantee cover is 85%
date of disbursement (including moratorium of maximum of for micro enterprises for credit up to 5 lakh. The extent of
One year (interest shall be payable as and when debited). guarantee cover is 50% of the sanctioned amount of the
Fee/ charges- For this no charges/guarantee fees to be credit facility for credit from Rs 10 lakh to Rs 100 lakh per
charged by MLIs/NCGTC. MSE borrower for retail trade activity.

Duration- The Scheme would be applicable to all loans Conclusion
sanctioned under GECL(Guaranteed Emergency Credit Line) Apart from the guarantee schemes covered above few other
during the period from the date of issue of these guidelines schemes are also there which are catering the needs of
by NCGTC to 31.10.2020, or till an amount of Rs 3, 00,000/ different segments but not related to NCGTC like-
- crore is sanctioned under the GECL, whichever is earlier.
Y Credit Enhancement Guarantee Scheme for Scheduled
Castes (CEGSSC).
Other guarantee schemes
Y Credit Guarantee Scheme for PM SVANidhi (CGS- PMS).
ECGC Ltd. (Formerly Export Credit Guarantee Corporation
of India Ltd.), wholly owned by Government of India, was Y Credit Guarantee Scheme for Subordinate Debt (CGSSD)
set up in 1957 with the objective of promoting exports from for Stressed MSMEs
the country by providing Credit Risk Insurance and related
The basic requirement is that the scheme is to be
services for exports. It functions under the administrative
control of Ministry of Commerce & Industry, and is managed implemented judiciously by the Banks and other money
by a Board of Directors comprising representatives of the lending institutions, so that social as well as economic
Government, Reserve Bank of India, banking, Insurance and development of the needy person can take place, especially
exporting community. when they are not having support in terms of third party
guarantee or collateral as the case may be.
Over the years it has designed different export credit risk
insurance products to suit the requirements of Indian These schemes are discussed briefly and detailed contents
exporters and commercial banks extending export Credit. can be reached through references mentioned below.
ECGC is essentially an export promotion organization,
seeking to improve the competitiveness of the Indian In our country looking at the today's scenario it is very much
exporters by providing them with credit insurance covers. important to get skilled through various skill development
schemes and support and to start a business or
ECGC Provides a range of credit risk insurance covers to entrepreneurship, it's very important to utilize these
exporters against loss in export of goods and services, Offers schemes based on the requirement by the deserving people.
Export Credit Insurance covers to banks and financial Now various guarantee providing institutions like Banks and
institutions to enable exporters to obtain better facilities financial institutions are also required to work judiciously for
from them. Provides Overseas Investment Insurance to implementing it in true spirit and provide the benefits to
Indian companies investing in joint ventures abroad in the deserving individuals/firms so, that social and economic
form of equity or loan. upliftment can take place.

Credit Guarantee Fund Trust for Micro & Small Reference-
Enterprises-
Y NCGTC Website,
Ministry of Micro, Small & Medium Enterprises (MSME),
Y NCGTC Journal Vishwas.
Government of India launched Credit Guarantee Scheme
(CGS) so as to strengthen credit delivery system and Y ECGC ltd
facilitate flow of credit to the MSE sector. To operationalise Y CGTMSE T

BANKING FINANCE | FEBRUARY | 2021 | 49