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SSC CPO 2019 PYQ — Question 55

SSC CPO Tier I - 9th December 2019 - Shift 1 • General Awareness • Q55

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As of October 2019, what is the maximum amount of loan granted by a scheduled
commercial bank that is covered under the Credit Guarantee Fund Scheme for Micro
and Small Enterprises?

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Correct answer: B

Explanation

The correct answer is Option 2 i.e. ₹200 lakh.

Credit Guarantee Fund Scheme for Micro
and Small Enterprises (CGTMSE)
  • The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector.
  • Under this scheme, Fund and non-fund based (Letters of Credit, Bank Guarantee, etc.) credit facilities up to Rs 200 lakh per eligible borrower are covered.
  • The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility.