Module: General Practice
Q12: Regarding the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme as of February 2026, which of the following statements is INCORRECT?
✅ Correct Answer: A
The Incorrect Statement is A. CGTMSE is a collateral-free scheme.
The Member Lending Institution (MLI) cannot ask for any collateral security or third-party guarantee for the credit facility covered under the scheme.
It is not a hybrid model.
As of Budget 2025, the maximum credit limit eligible for guarantee cover was doubled to Rupees 10 crore.
The cover is generally 75% to 85% depending on the loan size and category.
The Member Lending Institution (MLI) cannot ask for any collateral security or third-party guarantee for the credit facility covered under the scheme.
It is not a hybrid model.
As of Budget 2025, the maximum credit limit eligible for guarantee cover was doubled to Rupees 10 crore.
The cover is generally 75% to 85% depending on the loan size and category.