The scheme aims at motivating first generation entrepreneurs towards self-employment by providing credit guarantee funding for third-party guarantee-free / collateral free loans.
Guarantee on credits for loans up to Rs. 2 crores, without third-party guarantee and collateral.
Guarantee on coverages range from 75% (others) to 85% (Micro Enterprise up to Rs 5 lakh).
50% of the coverage is for retail activity.
SCHEME APPLICABLE FOR
Current Entrepreneurs and Aspirant Entrepreneurs.
Third party/ collateral guarantee free credit facilitation by eligible institutions with maximum credit capped at Rs. 200 lakhs qualify for guarantee under the scheme. Lately, guarantee coverage has been made eligible to selected Small Finance banks and NBFCs.
Guarantee cover extends to 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility. Extent of guarantee cover is of 85% for micro-enterprises for credit up to Rs. 5 lakhs. Extent of guarantee cover if of 50% for credit ranging from 10 lakh to 100 Lakh per micro and small enterprise borrower retail trade activity.
Extent of guarantee cover is 80% for both MSME owned/operated by women and loans/credits in the North East Region for credits up to Rs. 50 lakhs. In cases of default, the trust settles 75% of the amount extended by the lending institutions for credits up to Rs. 200 lakhs.
HOW TO APPLY
Through Member Lending Institutions (Banks and NBFCs).