Credit Guarantee Scheme for Subordinate Debt – CGSSD scheme
Recently, the ‘Credit Guarantee Scheme for Subordinate Debt: CGSSD’ scheme, referred to as Subsidiary Loan for Micro, Small and Medium Enterprises (MSMEs) in distress, has been extended till March 31, 2022. .
It was started under the self-reliant India package. It aims to provide credit facilities through lending institutions to the promoters of operational but stressed MSMEs (i.e. MSMEs marked as NPA as on 30 April 2020).
Under this, promoters are provided a loan equal to 15% of their stake (equity as well as debt) or Rs 75 lakh (whichever is less).
Under this scheme, 90% guarantee coverage will be provided for this subsidiary loan and the remaining 10% will be provided by the respective promoters.
Source- The Hindu