Chhatrapati Sambhajinagar:
Here is some good news for the budding entrepreneurs desirous to experiment with their innovative ideas and establish start-ups as the government has extended the non-interest loan limit under Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) from Rs 2 crore to Rs 5 crore. The new scheme will be effective from April 1.
What is CGTMSE?
Many times the need of capital emerges in starting a new venture or sustaining the business on a regular basis. If the required money is not available on time, there is a possibility that the business may get closed. Considering the inconvenience, the Central Government has introduced the CGTMSE. Under this scheme, the applicant gets a loan from the bank of Rs 2 crore on the government's guarantee till March 31. This credit limit has now been extended to Rs 5 crore.
Requirement of documents
The list of documents required includes an establishment registration certificate, project report, GST registration, IT returns and the documents demanded by the bank officer. The details in this regard is available on the Central Government’s website on CGTMSE.
Less recovery annually
Under the scheme, the applicant was supposed to pay a surcharge of 2.5 per cent to 3.5 pc. This charge has now been reduced and turned out to be a boon for entrepreneurs.
Box
The District Industries Officer (DIO), Ajinkya Aajgekar said, “The CGTMSE provides capital to overcome the financial crisis or emergency in establishing a start-up or running the business. The government has extended the limit of guarantee. Now the banks will be giving non-interest loans up to Rs 5 crore. Hence the entrepreneurs and other industrialists should avail the credit scheme in large numbers.”