The Micro, Small and Medium Enterprise (MSME) has issued a circular regarding the enhancement in Credit Guarantee Limit from Rs.5 crore to Rs.10 crore.
Reetu | Mar 27, 2025 |
MSME Circular on Enhancement in Credit Guarantee Limit from Rs.5 crore to Rs.10 crore
The Micro, Small and Medium Enterprise (MSME) has issued a circular regarding the enhancement in Credit Guarantee Limit from Rs.5 crore to Rs.10 crore.
The Circular Reads as Follows:
Please refer to our Circular No.220/2022–23 dated March 31, 2023, on increase in ceiling of coverage from `200 lakh to `500 lakh – CGS I. Further, in line with the announcement made by the Hon’ble Finance Minister, Government of India, during the Budget speech for FY 2025-26, it has been decided to increase the ceiling of guarantee coverage from Rs.5 crore to “Rs.10 crore” under Credit Guarantee Scheme-I (for Banks) (applicable for Public Sector Banks, Pvt Sector Banks, Foreign Banks and Select FIs).
The standard rate of Annual Guarantee fee shall be as under:
The revised guideline will be applicable to all guarantees approved on or after April 1, 2025, including enhancements in Working Capital of existing covered accounts. It may be noted that all other covenants of the Credit Guarantee Scheme would apply mutatis mutandis.
The contents of this circular may please be brought to the notice of all your offices.
For Official Circular Download PDF Given Below:
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