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Credit Guarantee Fund
Trust for Micro and
Small Enterprises
(Set up by Government. of India and SIDBI)
July 02, 2007

CGTSI/(44)/ 522
All Member Lending Institutions of CGTSI

Circular No. 37 / 2007-08
Dear Sir,

Financial Sector Plan for the North Eastern RegionModifications in the Credit Guarantee Scheme
Based on the recommendations of the Committee on Financial Sector Plan for North Eastern Region, it
has been decided as under:
i)

The up front Guarantee Fee will be reduced by 50% from 1.5% to 0.75% for all
loans in the North Eastern Region.

ii)

The
extent
of
guarantee
cover
will
80% for all loans in the North Eastern Region.

be

raised

from

75%

to

The consequential changes in the Scheme are given in the Annexure. You are requested to advise your
operating offices (Zonal / Branch Offices) about the modification made to the Scheme as above. We solicit
your cooperation in covering maximum proposals under the Scheme in the North Eastern Region.

Yours faithfully,
Sd/-

(P.M.Radhakrishnan)
Deputy General Manager

No.5 per cent) of the credit facility sanctioned.36 dated July 2. . Modified Provision Guarantee Fee and Annual Service Fee A one time guarantee fee at specified rate (currently 1.36 dated July2. 8. 2007). Extent of the guarantee The Trust shall provide guarantee cover of up to 75% of the amount in default of the credit facility extended by the lending institution to an eligible borrower. (comprising term loan and / or working capital facility) shall be paid upfront to the Trust by the eligible institution availing of the guarantee. (This will be incorporated along with the amendments obtaining as per the circular No. with the proviso that the applicable rate for loans to borrowers in the North Eastern region shall be 0.5 per cent) of the credit facility sanctioned. subject to a maximum guarantee cover of Rs. (This will be incorporated along with the amendments obtaining as per the circular No. subject to a maximum guarantee cover of Rs.75%. 2007). (comprising term loan and / or working capital facility) shall be paid upfront to the Trust by the eligible institution availing of the guarantee. 18.75 lakh (Rupees eighteen lakh seventy five thousand only) per borrower Extent of the guarantee The Trust shall provide up to 75% of the amount in default of the credit facility extended by the lending institution to an eligible borrower. 37.Annexure Ch. i) Original Provision Guarantee Fee and Annual Service Fee A one time guarantee fee at specified rate (currently 1. 9.50 lakh (Rupees thirty seven lakh fifty thousand only) with the proviso that the extent of guarantee cover will be raised to 80% for loans in the North Eastern region irrespective of amount.