CGTMSE Application Form PDF

Addressing the press conference, Union Finance Minister Sitharaman has announced eight relief measures. Out of these eight measures, four announcements are new. First of all, a new relief package related to the health sector was announced. The Finance Minister has announced a 1.1 lakh crore Credit Guarantee Scheme for the Covid-affected sector.

To face the economic challenges arising out of the Corona crisis, a relief package of 1.1 lakh crores has been announced for the sectors affected by COVID-19. Under this Stimulus Package, Rs 50,000 crore has been announced for the healthcare sector and Rs 60,000 crore for other sectors. If you also want to apply under the scheme. So for this, you have to download the Credit Guarantee Scheme Application Form PDF. The complete information about the application form is given to you in the article below.

Credit Guarantee Scheme Application Form PDF

Required Documents

The documents required for a loan under the Credit Guarantee Scheme and its coverage are given below-

• passport size photograph
• self draft a business plan
• Business Incorporation Letter / Company Registration Certificate
• business project report
• CGTMSE Loan Coverage Letter
• copy of loan sanction from the bank
• Any other document required by the bank

CGTMSE Scheme Eligibility Conditions

• Lending Institutions => All Listed Commercial Banks and Regional Rural Banks (RRBs), including NSIC, NEFDi, and SIDBI, all such institutions can be considered as eligible institutions. The institutions that tie up with CGTMSE are called Member Lending Institutions (MLIs).
• Eligible Beneficiaries => All new and existing MSMEs are eligible for this credit guarantee scheme under certain conditions, conditions are as follows-

1. The plan guarantees up to 75% of the loan principal amount (up to 85% of the default principal amount in some cases). This cover provides a maximum guarantee limit of Rs 37.50 lakh for loan facilities up to Rs 50 lakh.
2. The principal amount along with interest is covered for one-fourth of the loan tenure or for the outstanding period, such as in the case of NPA or the date of filing of dispute litigation.
3. Other charges, such as penal interest, commitment charges, service charges, or any other charges do not qualify for Guarantee Cover.

Credit Guarantee Scheme Application Process

If you want to apply under the scheme, then for this you have to follow the following steps.

• First of all, you have to get its application form. Click on the link below to download the form.

Download Credit Guarantee Scheme Application Form PDF

• After downloading the form, you have to fill in all the information asked in the form correctly.
• After filling in the information, you have to attach the required documents along with the form.
• After adding the documents you have to submit the form to the bank. (From where you want to take a loan)
• After this, your application will be checked. You will be provided benefits under the scheme only if the information given by you in the application form is found correct.

Benefits for Business in Credit Guarantee Scheme

Small businesses are an integral part of the Indian economy and contribute about 10% to the country’s GDP. They employ more than 7 crores, people, even though they face many hurdles in availing of finance and business loans. Despite their large presence in various market segments, banks/NBFCs remain concerned about the NPAs of smaller and more small businesses. Even though it is a risk, these factors cause problems for both businesses and banks. For example, small businesses do not think of the loan approval process as simple or business-friendly. Banks prefer not to give loans until they have checked all the documents and got a guarantee. To tackle such troubles, CGTMSE (Credit Guarantee Scheme) has come forward to play an important role. It shared the risk. Has helped in providing relief to both the loan institution and the loan applicant.