Credit Guarantee Fund Trust for

Small Industries
CGTSI/(44)/560

August 14, 2003

All the operating offices of Member Lending

Institutions (MLIs) of CGTSI

Circular No. 13/2003-04

Dear Sir,

Credit Guarantee Fund Scheme for Small Industries (CGFSI)

i) Removal of Minimum credit limit for Guarantee Cover
ii) Inclusion of Small Scale Service & Business (Industry Related) Enterprises (SSSBEs)
_______________________________________________________________________

Please refer to our Circular No. 8 /2002-03 notified vide our letter No. CGTSI/ (44)/1094 dated
December 12, 2002 specifying a minimum credit limit of above Rs 5 lakh for providing guarantee cover
under CGFSI. The decision has since been reviewed and it has been decided to withdraw the minimum
ceiling on credit limit for coverage under CGFSI.
Further, we inform that the scope of CGFSI has since been widened as under Presently new and existing SSI units engaged in manufacturing activity or in information
technology or in software industry are eligible under CGFSI. Effective September 01,
2003, the credit facilities upto Rs. 25 lakh sanctioned without collateral security and / or
third party guarantee by the MLIs to the new and existing Small Scale Service & Business
(Industry Related) Enterprises (SSSBEs ) have also been made eligible for coverage
under the scheme.
The above modifications in CGFSI would come into effect from September 01, 2003.
We request you to kindly bring the above modifications to the notice of all the Zonal / Regional /
Branch offices of your Bank / Institution. We seek the cooperation of all the Member Lending Institutions
of CGTSI in stepping up flow of collateral free credit to SSI sector.
Thanking you,
Yours faithfully,
Sd/(N. Venkatasubramanyan)

Chief Executive Officer