Module: General Practice
Q8: The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) facilitates collateral-free loans. As of the current guidelines (2025-26), what is the maximum loan amount per borrower that can be covered under this guarantee scheme?
✅ Correct Answer: D
Correct Option: D. Concept: CGTMSE Coverage Limit.
Evolution: Earlier, the limit was ₹5 Crore, which was later raised to ₹10 Crore in 2025.
Significance: This means banks can lend up to ₹10 Crore to a Micro or Small enterprise without taking third-party collateral, as the Trust guarantees a significant portion (75% to 85%) of the default risk.
Evolution: Earlier, the limit was ₹5 Crore, which was later raised to ₹10 Crore in 2025.
Significance: This means banks can lend up to ₹10 Crore to a Micro or Small enterprise without taking third-party collateral, as the Trust guarantees a significant portion (75% to 85%) of the default risk.