Module: General Practice
Q9: Regarding the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, as per the enhanced guidelines effective April 1, 2025, consider the following statements:
The ceiling for guarantee coverage has been enhanced to Rupees 10 Crore per borrower.
Retail and Wholesale Trade activities are eligible for coverage under the scheme.
The scheme offers a "Hybrid Security" product allowing collateral for a part of the facility and guarantee cover for the unsecured balance.
Which of the statements given above are correct?
Retail and Wholesale Trade activities are eligible for coverage under the scheme.
The scheme offers a "Hybrid Security" product allowing collateral for a part of the facility and guarantee cover for the unsecured balance.
Which of the statements given above are correct?
✅ Correct Answer: D
Statement 1 is correct because per CGTMSE Circular No.
250/2024-25 (dated March 18, 2025), the guarantee coverage ceiling was raised from Rupees 5 Crore to Rupees 10 Crore effective April 01, 2025.
Statement 2 is correct as Retail and Wholesale Trade, previously excluded, were made eligible activities and are treated at par with other activities.
Statement 3 is correct because the "Hybrid Security" model is a unique feature of CGTMSE.
It allows a bank to take collateral for a portion of the loan (e.g., Rupees 5 Crore secured) and seek CGTMSE cover for the remaining unsecured portion (e.g., Rupees 5 Crore unsecured), provided the total exposure is within limits.
250/2024-25 (dated March 18, 2025), the guarantee coverage ceiling was raised from Rupees 5 Crore to Rupees 10 Crore effective April 01, 2025.
Statement 2 is correct as Retail and Wholesale Trade, previously excluded, were made eligible activities and are treated at par with other activities.
Statement 3 is correct because the "Hybrid Security" model is a unique feature of CGTMSE.
It allows a bank to take collateral for a portion of the loan (e.g., Rupees 5 Crore secured) and seek CGTMSE cover for the remaining unsecured portion (e.g., Rupees 5 Crore unsecured), provided the total exposure is within limits.