Saturday, May 19, 2007

Credit Guarantee Fund Trust for Small Industries (CGTSI)

Credit Guarantee Fund Trust for Small Industries (CGTSI) was set up by GOI and SIDBI.The Guarantee scheme seeks to assure the lender that, in the event of an SSI unit, which availed collateral free credit facilities, failing to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 75 per cent of the credit facility. The scheme is initially confined to guaranteeing of loans extended by all scheduled commercial banks and specified Regional Rural Banks, NSIC, NEDFi, SIDBI, which have entered into an agreement with the Guarantee Trust for the purpose. New as well as existing SSI units engaged in manufacturing activities or in IT and software industry or Small Scale Service & Business (Industry Related) Enterprises (SSSBEs ) are eligible for support.

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