Banking · MSME Financing

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a cornerstone scheme for MSME financing. Which of the following statements correctly describes its features and applicability? 1. The CGTMSE scheme is only applicable for term loans provided to Micro and Small Enterprises, excluding working capital facilities. 2. The scheme provides a maximum guarantee cover of up to 85 percent of the credit facility, depending on the category of the borrower and the loan amount. 3. The guarantee cover is available for both new and existing Micro and Small Enterprises, provided the loan is extended without collateral and third-party guarantee. 4. The maximum amount of loan for which a single eligible borrower can be covered under the scheme is Rupees 200 Lakh (2 Crore).