Credit Guarantee Fund

Trust for Micro and

Small Enterprises
Set up by GoI and SIDBI

Credit Guarantee Fund Trust for Micro and Small

Enterprises
(CGTMSE)
 Contents
Overview of CGTMSE

Process of Guarantee Coverage

Process of Claims

CGTMSE – Fact Sheet & Impact

Policy changes- Inclusion of retail trade & Partial collateral

Overview of CGTMSE
 Establishment

• Setup
in July 2000 as a Trust by Government of India (Ministry of
MSME) and SIDBI – the settlors
• Initial corpus contribution of ₹.2500 crore; GoI and SIDBI in the ratio
of 4 :1
• The existing committed Corpus of the Trust was enhanced by the
Govt. of India to ₹. 7500 crore in December 2016
• Additional Corpus of ₹.5000 crore shall being contributed entirely by
the Govt. of India
Member Lending Institutions

114
Total
Registered MLIs

• 20 PSU Banks
• 21 Pvt. Banks
• 51 RRBs
• 9 Financial
Institutions
• 5 Foreign Banks
• 6 NBFCs
• 2 SFB
 Salient Features
• Manufacturing and Service Enterprises in Micro & Small (MSE) sector, as defined in MSMED Act
2006 are eligible. Credit Facility up to ₹.200 lakh covered since 01/01/2017
• Entire credit facility must be extended without any collateral security and / or third party guarantee.
Credit facility with partial collateral security has since been made eligible for coverage under
CGTMSE*.
• Credit for educational / training institutions and SHGs / agricultural activities are not eligible for
coverage.
• MSE Retail Trade has since been included as an eligible activity for facilities sanctioned on or after
01/04/2018 from ₹10 lakh to ₹100Lakh.
• As per latest guidelines issued on January 09, 2017, for loans sanctioned from 01.01.2017, Interest
levied by MLIs should not be more than 14% (including guarantee fee).

* Circular on Credit Facility with Partial Security is being made applicable for credit facility sanctioned on or after
01/04/2018
 Extent of Guarantee cover

Upto `50 lakh

Upto `5 lakh

Others Category

Micro Enterprises Extent of

Guarantee
cover Above `50 lakh upto
`200 lakh
Upto `50 lakh

All Categories
Women Entrepreneur /
units located in North
Eastern Region (Incl
Sikkim)

* Currently for credit facility above Rs.50 lakh the Guarantee Coverage is limited to 50% which has been enhanced
to 75% for facilities sanctioned/ renewed on or after 01/04/2018. Retail trade segment would be covered at 50%.
 Guarantee Fee Standard rate*
For loans sanctioned on or after January 01, 2013 and covered under Charging of Annual Fees at Differential rates.
Credit Guarantee Scheme (CGS), applicable fees will be: Applicable to credit facilities sanctioned by MLIs on
or after April 01, 2016

Standard Rate (SR) 1) Risk premium on NPAs (2) Risk premium on

Annual Guarantee Fee (AGF) [% p.a.] in Guaranteed portfolio Claim Payout Ratio

Women, Micro NPA Risk Claim Risk

Credit Facility Percentage Premium Payout Premium
Enterprises and units in
Others Percentage
North East Region (incl.
Sikkim) 0-5% SR 0-5% SR
>5-10% 10% of SR >5-10% 10% of SR
Upto ₹5 lakh 0.75 1.00
>10-15% 15% of SR >10-15% 15% of SR
Above ₹5 lakh >15-20% 20% of SR >15-20% 20% of SR
and upto `200 0.85 1.00
lakh >20% 25% of SR >20% 25% of SR

*Currently AGF is being charged on Sanction Amount. However, the same is revised and will now be charged
on Outstanding Amount of Credit Facility for credit facility sanctioned/renewed on or after 01/04/2018.
 Revised Guarantee Fee
to be charged on the outstanding loan amount
for credit facility sanctioned on or after 01/04/2018
Revised Standard Rate (SR)
Annual Guarantee Fee (AGF) [% p.a.]

Credit Facility Women, Micro

Enterprises and units
Others
in North East Region
(incl. Sikkim)

Upto ₹5 lakh 1.00

Above ₹5 Lakhs and up

1.35 1.50
to ₹50 Lakhs

Above ₹50 lakh and upto

1.80
₹200 lakh

MSE Retail Trade

2.00
₹10 lakh to ₹100 lakh

Risk Premium as per extant guidelines of the Trust will be applied on above Standard Rate
Process of Guarantee Coverage
 Process of Guarantee Application

SME Application CGTMSE Issuance of Annual Expiry of

submitted to MLIs Approval Guarantee Generation of Fee the coverage

 Due Diligence  CGTMSE  Guarantee is Annual  After the

done by the MLIs approves the issued after the Guarantee Fee completion of the
online receipt of fee (AGF) is payable tenure the
 Application
application for continuation guarantee cover
submitted by MLI
submitted by of the coverage expires
to CGTMSE for
MLI
guarantee
Risk premium  Incase of working
coverage by end of
on guarantee capital, guarantee
next quarter from
fees based on can be renewed
sanction date
NPA levels & after expiry
payout ratios.

Submitting online application

Online payment
Process of Claim
 Claim Process

Online Claim 1st Claim Payment of 1st Remittance of 2nd Claim

NPA marking
Lodgment installment installment recovery installment

 Guarantee can 1st installment On approval of  Any recovery

 NPA to be  2nd installment of
be invoked only of claim is settled claim received post
marked in CGTMSE claim is settled on
after initiation of if claim application 1st settlement of 1st conclusion of
portal by end of legal action application is installment is claim, is to be recovery
next quarter from
found to be in paid through remitted to CGTMSE proceedings
NPA date Claim order NEFT/RTGS (net off legal
application can expenses)
On up-gradation be lodged with 1  If for any
MLI can upgrade or 2 years from queries, claim
the unit in the NPA application is
CGTMSE portal date/lock in returned for
period based on resubmission
sanction date
CGTMSE – Fact Sheet and Impact
 CGTMSE Impact
30,43,716 Guarantees approved
for over `1.47 Lakh Crore

Estimated
turnover Women
beneficiary
₹12,22,736 crore
16%
SC/ST Minority
8%
Estimated Number of Job
creation
exports
Support to First 100 lakh
₹8635 crore
Generation
Entrepreneur
48%

Data as on April 30, 2018

 Guarantee Coverage
25000 160000
Year Wise - Amount in crores

Cumulative - Amount in crore

140000
20000
120000

15000 100000
80000
10000 60000
40000
5000
20000
0 0

Financial Year

Year wise Amount of Guarantees Approved (₹ Crore) Cumulative Guarantees Approved (₹ Crore)
Policy Changes
 Coverage of Retail Trade

• Coverage extended to MSE Retail Traders.

• Exposure limit for credit facility of retail trade segment will be from ₹10
lakh to ₹100 lakh per MSE borrower.
• Extent of guarantee coverage to such credit facility would be 50%
irrespective of the category of the borrower.
• Applicable fee i.e. Standard AGF will be charged at the rate of 2% of the
guaranteed amount for the first year and on the outstanding amount for
the remaining tenure of the credit facility.
 Partial Collateral Security under Credit Guarantee Scheme

• CGTMSE has introduced a new “Hybrid Security” product allowing

guarantee cover for the portion of credit facility not covered by collateral
security.
• Maximum coverage under CGTMSE will be ₹200 lakh
• CGTMSE will, however, have pari-passu charge on the primary security as
well as on the collateral security provided by the borrower for the credit
facility
 Thank You
Contact us at :
Credit Guarantee Fund Trust for Micro and
Small Enterprises
1002-1003, Naman Center
10th Floor, Plot No.C-11, ‘G’ Block
Bandra Kurla Complex
Mumbai-400051
Phone : 022-26541803-07, 61437800 (24 lines)
Toll Free number : 1800 222 659
Website : www.cgtmse.in
 Path for submitting online application
• Member Login area >> Application processing >>
Guarantee For >> Select Type of facility sanctioned

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 Payment History and Status
• Report and MIS >> Application Related Report >> CGPAN History >> Enter
Borrower Details.
• Status AP stands for Live case if the Guarantee fee has been realized
• CL = Closed Case, EX = Expired case, RE = Rejected Case

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 Payment of fee through RTGS/ NEFT
Step 1: Receipt & payment >> Allocate payment online

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Payment of fee through RTGS/ NEFT

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 Payment of fee through RTGS/ NEFT
Step 2: Modify/ Cancel RP

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 Payment of fee through RTGS/ NEFT
Step 3: Initiate Payment

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 Payment of fee through RTGS/ NEFT
Step 3: Initiate Payment >> Confirmation Tab

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 Payment of fee through RTGS/ NEFT
Step 3: Display of Virtual A/c nos, IFSC code & amount for payment

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