• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Manifest Learning Academy
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Economy

Credit Schemes

August 14, 2019
in Economy
Reading Time: 3 mins read
0
51
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF

 Credit Guarantee scheme and Credit Linked Capital Subsidy scheme for MSMEs

Source: PIB and Indiafindings.com

Credit Guarantee Scheme

The scheme facilitates credit to the MSE units by covering collateral free credit facility (term loan and /or working capital) extended by eligible lending institutions to new and existing micro and small enterprises

Key highlights

  • The scheme provides benefit to a Startup that is recognised by the Department for Promotion of Industry and Internal Trade(previously called DIPP) according to the Gazette Notifications that is issued from time to time.
  • For all resident Directors/ partners, the Aadhaar card would be made mandatory, and for all non-resident directors/ partners, the passport number would be made as a necessary part as per the KYC norms.
  • The Member Lending Institutions (MLIs) under the scheme can be SEBI registered AIFs; RBI registered Non-Banking Financial Companies (NBFCs), Scheduled Commercial banks and Financial Institutions, etc.

 

  • The scheme functions under the trusteeship management of the National Credit Guarantee Trustee Company (NCGTC).

 

  • The instruments for assistance can be in the form of venture debt, working capital, debentures, optionally convertible debt, etc.
  • MLIs offers loans up to any amount as required by an eligible borrower. Therefore, through this scheme, the exposure to avail credit guarantee would be limited to Rs. 500 lakh per eligible borrower. These loans would be extended by MLIs without any security and third party guarantee.
  • The Management Committee (MS) would be made responsible for the overall supervision and monitoring of the Credit Guarantee Scheme for startups.
  • A Risk Evaluation Committee (REC) would also be formed to address the conflict of interest.
  • Credit Guarantee Scheme for Startups is provided to cover up to 75% of the credit facility up to Rs. 150 lakh. 
  • The scheme also covers upto 85% of credit facility for loans less than Rs. 5 lakh and offered to micro-enterprises. 
  • Further, the scheme covers upto 80% of credit facility for MSMEs that are operated/ owned by women and all loans to NER with the inclusion of Sikkim. For MSME retail trade, the guarantee cover offered is 50% of the amount – to a maximum of Rs. 50 lakh

Credit Linked Capital Subsidy Scheme 

Objectives

  • To facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15 per cent (on institutional finance of upto Rs 1 crore availed by them) for induction of well-established and improved technology in the specified 51 sub-sectors/products approved.
  • To upgrade their plant & machinery with state-of-the-art technology, with or without expansion and also for new MSEs which have set up their facilities with appropriate eligible and proven technology duly approved under scheme guidelines

Nature of assistance

The revised scheme aims at facilitating technology up-gradation by providing 15% up front capital subsidy to MSEs, including tiny, khadi, village and coir industrial units, on institutional finance availed by them for induction of well established and improved technologies in the specified sub-sectors/products approved under the scheme

Current status of the scheme

The Indian Government has commended the three-year extension of the CLCS scheme for MSEs with the general expenditure of Rs. 2,900 crores. The scheme has been authorised for continuation from 2017-2018 to 2019-2020

Eligibility criteria for financial assistance

The incubation support will be provided by the following host Institutions they are;

  • Indian Institutes of Technology (IITs)
  • National Institutes of Technology ( NITs)
  • Engineering Colleges
  • Technology Development Centres, Tool Rooms, etc
  • Other recognised R&D&/or Technical Institutes/Centres, Development Institutes of DIP&P in the field of Paper, Rubber, Machine Tools, etc

 

image_pdfMake PDF
Tags: Prelims

Related Posts

Ease of Doing Business (EoDB) Ranking for states

Ease of Doing Business (EoDB) Ranking for states

July 2, 2022
Pay Roll Automation for Disbursement of Monthly Allowances (PADMA)

Pay Roll Automation for Disbursement of Monthly Allowances (PADMA)

July 2, 2022
Computerisation of Primary Agricultural Credit Societies (PACS)

Computerisation of Primary Agricultural Credit Societies (PACS)

July 1, 2022
12th WTO Ministerial Conference

12th WTO Ministerial Conference

June 30, 2022
“National Highway Excellence Awards” 2021

“National Highway Excellence Awards” 2021

June 28, 2022
Global Liveability Index, 2022

Global Liveability Index, 2022

June 27, 2022
Odisha’s Mo Bus

Odisha’s Mo Bus

June 25, 2022
Payments Vision 2025

Payments Vision 2025

June 24, 2022
Twin deficit problem

Twin deficit problem

June 24, 2022
War on Drugs

War on Drugs

June 24, 2022
Please login to join discussion

Our Offline Classroom Student

PRELIMS 2021 POLITY QUESTIONS ANALYSED

https://youtu.be/5q8hBcRGhAs

PRELIMS 2021 HISTORY QUESTIONS ANALYSED

https://youtu.be/v0SIZ7SUybg

CONGRATULATIONS TO 2021 TOPPERS !!!

Rank 171 Kumar Shivashish
Rank 250 Sahithya
Rank 263 Sumit Kumar Thakur
Rank 311 Deepak Ramachandra Shet
Rank 455 Ravinandan B M

July 2022
MTWTFSS
 123
45678910
11121314151617
18192021222324
25262728293031
« Jun    

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tags

AIR BBC Business Standard CNN Deccan Herald DownToEarth Down to Earth DTE Economic Times ET GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express India today Indiatoday Kurukshetra LiveMint Mains News Newspaper News Paper PIB PIB & The Hindu pre Prelims PRS India RSTV Science Reporter Survey The Hindu The Hindustan Times The India Express The Indian Express The New Indian Express Times of India TOI TOPPERS UNDP website Wikipedia Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR BBC Business Standard CNN Deccan Herald DownToEarth Down to Earth DTE Economic Times ET GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express India today Indiatoday Kurukshetra LiveMint Mains News Newspaper News Paper PIB PIB & The Hindu pre Prelims PRS India RSTV Science Reporter Survey The Hindu The Hindustan Times The India Express The Indian Express The New Indian Express Times of India TOI TOPPERS UNDP website Wikipedia Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In