The Ministry of Micro,Small & Medium Enterprises vide its notification dated 14th March 2022 has extended the Credit Guarantee Scheme for Subordinate Debt upto 31st March 2022.
The Credit Guarantee Scheme for Subordinate Debt’ was approved by the Government on 1st June, 2020 and the scheme was launched on 24th June, 2020 to provide credit facility through lending institutions to the promoters of stressed MSMEs viz. SMA-2 (special mention accounts) and NPA (non-performing assests) accounts who are eligible for restructuring as per RBI guidelines on the books of the Lending institutions.
The Scheme is applicable for those MSMEs whose accounts have been standard as on 31.03.2018 and have been in regular operations, either as standard accounts, or as NPA accounts during financial year 2018-19 and financial year 2019-20. Fraud/ Wilful defaulter accounts will not be considered under the proposed scheme
Personal loan will be provided to the promoters of the MSME units. The MSME itself may be Proprietorship, Partnership, Private Limited Company or registered company etc.
