PURPOSE:
- To provide collateral free loans upto Rs. 100/- lacs to Micro & Small Enterprises, as defined under MSMED Act, 2006.
ELIGIBILITY:
- All Micro and Small Enterprises - both in Manufacturing Sector as well as in Service Sector - as defined under MSMED Act, 2006.
LIMIT:
- Term Loan and/or Working Capital / Non Fund Based facility like Letter of Credit, Guarantee etc. upto an aggregate limit of Rs. 100/- lacs to a single borrower.
SECURITY:
- Current/fixed assets of the unit. No collateral / third party guarantee.
GUARANTEE FEE:
- A one time guarantee fee (Joining fee) at specified rate (currently 1.5% p.a. of the credit facilities sanctioned (1% in case of limits upto Rs. 5/- lacs and 0.75% for all loans in North Eastern Region, including Sikkim) and annual service fee @ 0.75% p.a. (0.50% in case of credit facilities upto Rs. 5/- lacs).
BANK’S INITIATIVE
- 50% of the guarantee fee is shared by the bank with the borrowers enjoying credit facilities upto Rs. 50/- lacs, to reduce the cost to the borrower.
Conditions apply.
Complete details of the scheme are available on the website of Credit Guarantee Fund Trust for Micro and Small Enterprises
www.cgtmse.in
To know the current interest rates Click here.
