CGTMSE

Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)

 Borrowers eligible under the scheme will be covered under CGTMSE guarantee scheme. · The Guarantee Fee & Annual Service Fee as per the rates prescribed by CGTMSE from time to time to be borne by borrower.

Security · Security as defined by CGTMSE : “Primary Security” in respect of credit facility shall mean the Assets created out of the credit facility so extended and / or Existing Unencumbered assets which are directly associated with the project or business for which the credit facility has been extended. (i.e. Plant, Machinery, land & building pertaining to the project or business). · Guarantee: No third party guarantee is required. However in case the constitution of the borrower is proprietary or partnership, the personal guarantee of proprietor /partner is not treated as third party guarantee

 Repayment · Working Capital (WC): One year, repayable on demand. Working capital limits will be renewed every two year. However, performance of the unit and conduct of account will be reviewed annually for continuation of limits. · Term Loan: Maximum Seven Years including moratorium period.