Module: General Practice
Q11: Following the Union Budget 2025 announcement, the maximum guarantee coverage ceiling under the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) was enhanced effective April 1, 2025. What is the new maximum guarantee limit per borrower?
✅ Correct Answer: C
The new maximum guarantee limit is 10 Crore rupees.
To support the scaling up of Micro and Small Enterprises, the government doubled the collateral-free loan guarantee limit from 5 Crore rupees to 10 Crore rupees in 2025.
The limit was previously raised from 2 Crore to 5 Crore in 2023.
For Startups, the guarantee limit was enhanced even further to 20 Crore rupees under the Credit Guarantee Scheme for Startups (CGSS).
To support the scaling up of Micro and Small Enterprises, the government doubled the collateral-free loan guarantee limit from 5 Crore rupees to 10 Crore rupees in 2025.
The limit was previously raised from 2 Crore to 5 Crore in 2023.
For Startups, the guarantee limit was enhanced even further to 20 Crore rupees under the Credit Guarantee Scheme for Startups (CGSS).