Explanation:

Only statement 1st is correct.

• Women-owned micro and small enterprises will get enhanced credit guarantee coverage of 90 percent under the CGTMSE scheme after its board approved the new guidelines recently.

About Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

• The Ministry of Micro, Small & Medium Enterprises (M/o MSME) started the Credit Guarantee Scheme for Micro & Small Enterprises (MSEs) in the year 2000.

• Objective: To catalyze the flow of institutional credit to Micro & Small Enterprises (MSEs). 

• The scheme was formally launched on August 30, 2000, and is operational with effect from 1st January 2000.

• The scheme aims to facilitate access to credit for the unserved and underserved MSE segment of the MSME Sector, making the availability of credit from conventional lenders to new-generation entrepreneurs and underprivileged, that lack supporting their loan proposal with collateral security and/or a third-party guarantee.

• In order to implement the Credit Guarantee Scheme, CGTMSE was jointly set up by the M/o MSME, the Government of India, and the Small Industries Development Bank of India (SIDBI).

• Funding: The corpus of CGTMSE is being contributed by the Government of India and SIDBI in the ratio of 4:1.

Eligible Credit Facility:

• CGTMSE facilitates collateral-free credit support of up to Rs. 5 crores to MSEs, extended by the CGTMSE’s Member Lending Institutions.

• The extent of guarantee cover is 85% for microenterprises for credit up to Rs. 5 lakhs. For credit ranging from Rs. 5 lakhs to Rs. 500 lakhs, the extent of guarantee cover is 75%.

• The extent of guarantee cover is 80% for loans/credits in the North East Region(incl. Sikkim, UT of Jammu & Kashmir, and UT of Ladakh) for credits up to Rs. 50 lakhs. Above Rs.50 lakhs, guarantee cover is 75%.

Hence option 1st is correct.