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Consider the following statements regarding the Credit Guarantee Scheme for Micro and Small Enterprises (CGS):
  1. It was launched by the Government to make available interest-free credit to the micro and small enterprise sector.
  2. Both the existing and the new enterprises are eligible to be covered under the scheme.
Which of the statements given above is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding the Credit Guarantee Schem...
The Central Government listed 7 priorities – called ‘Saptarishi’ in Budget 2023- inclusive development, Last mile delivery, Infrastructure, Green growth, Youth power, Unleashing potential, and Financial inclusion.
Key Initiatives under Financial Inclusion:
Credit Guarantee for MSMEs:
  • The revamped Credit Guarantee scheme will take effect from 1st April 2023 through infusion of ` 9,000 crores in the corpus.
  • This will enable additional collateral-free guaranteed credit of ` 2 lakh crore.
  • The cost of the credit will be reduced by about 1 percent.
  • What is the Credit Guarantee Scheme for Micro and Small Enterprises (CGS)?
  • CGS was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sectors. 
  • Both the existing and the new enterprises are eligible to be covered under the scheme.
  • The Ministry of Micro, Small and Medium Enterprises, GoI, and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the CGS. 
Hence only statement 2 is correct.
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Consider the following statements regarding the Credit Guarantee Scheme for Micro and Small Enterprises (CGS): It was launched by the Government to make available interest-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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