Credit Guarantee Fund Scheme for Micro and Small Enterprises

(CGMSE)

Purpose
CGMSE provides credit guarantee cover to the collateral free credit provided to Micro
& Small Enterprises by the bank.

Eligibility:
 For all credit facilities under MSE up to Rs.10 lacs:

As per RBI guidelines, no collateral security shall be obtained and all eligible loans shall
be covered under CGTMSE without exception.

 For all credit facilities above Rs.10 lacs up to Rs. 100 lacs under MSE eligible for
coverage under CGTMSE

Only primary security /mortgage of land and building associated with the business shall
be obtained and all eligible accounts shall be covered under CGTMSE. However option is
available to borrower to decide on coverage of loans under CGTMSE

Security
Assets created out of credit facility granted and associated with the business of the unit
and CGTMSE covered loans no third party or collateral security.

Rate of interest:
Credit Facilities(Cumulative) Interest Rate
Upto `.50000/= BR+0.50%
Above `.50000/= upto `.10.00 lacs BR+1.00%
Credit Rating Above `.10 lacs & upto `.100 Lacs Above `.100 lacs

Covered Under Not Covered Under

CGMSE CGMSE
Synd 1 BR+1.00% BR+1.25% BR+1.25%
Synd 2 BR+1.00% BR+1.25% BR+1.50%
Synd 3 BR+1.25% BR+1.50% BR+2.50%
Synd 4 BR+1.25% BR+1.50% BR+2.50%
Synd 5 BR+1.75% BR+2.00% BR+3.00%
Synd 6 BR+1.75% BR+2.00% BR+3.00%
Synd 7 &below BR+2.25%. BR+2.50%. BR+3.50%.
* All Micro Enterprises will get a rebate of 0.50% in rate of interest for prompt
repayment; however, the final rate of interest after concession shall not be below Base
Rate in any case.

* The tenor premium of 0.25%shall be added for all term loans of 36 months and above
as per the guidelines.
Tenure

Period of term loan in case of Term Loans and 5 years in case of working capital facility.

Annual Guarantee Fee (AGF)

Composite all in one guarantee fee@ 1.00% of the credit facility sanctions is payable
annually to CGTMSE.In case of women Micro Enterprises and units in North eastern
region it is 0.75% for loans up to Rs. 5.00 lac and 0.85% for loans above Rs 10.00

Extent of guarantee cover (subject to maximum ceilings)

A. For loans up to Rs.50.00 lac

i) 85% of the amount in default for loans up to Rs.5.00 lac granted to Micro
Enterprises.
ii) 80% of the amount in default for loans granted to Women Enterprises/Units
located in North Eastern Regions (other than (i) above)

75% of the amount in default for other category of borrower.

B. For loans above Rs.50.00 lac

-50% of amount in default subject to overall ceiling of Rs 50.00 lakh. (50%).

Lock-in-period

Lock in period of 18 months from either the date of last disbursement or date of
payment of guarantee fee whichever is later, for invoking the claim under the scheme.

*Conditions apply

For further details, please contact your nearest SyndicateBank branches.