Are you a small business owner struggling to secure a loan?
The Credit Guarantee Scheme might be the solution for you!
This scheme provides a guarantee to lending institutions, encouraging them to provide credit to MSME.
According to the type of Borrower & Loan amount the extent of Guarantee coverage is decided!
For Micro enterprises with credit up to ₹ 5 lakh, the guarantee coverage is up to 85%. Above ₹ 5 lakh till ₹ 5 Crores, the guarantee is up to 75%.
However, to avail this facility you need to pay an Annual Guarantee Fee.
For the first year, the Annual Guarantee Fee is charged on the guaranteed amount. For the rest of the tenure, it is levied on the outstanding amount.
Please note that that the banks will ultimately decide whether to approve your loan based on their eligibility criteria and your business proposal.
If you want to know more about it then visit the Credit Guarantee Trust for Micro and Small Enterprises Website
Source: www.cgtmse.in
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