Consider the following statements regarding Credit Guarantee Fund Scheme for Small Industries 1 This...........

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Consider the following statements regarding Credit Guarantee Fund Scheme for Small Industries:

1. This scheme is launched to make available collateral-free credit to the only small enterprises

2. Only new enterprises are eligible to be covered under the scheme.

3. This scheme was launched in 2001

Which of the above statement are incorrect?

1 and 2 only

1 and 3 only

1,2 and 3

2 and 3 only

Explanation:

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector.
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 Credit Guarantee Fund Scheme for Micro and Small Enterprises.
The scheme was formally launched on August 30, 2000. The corpus of CGTMSE is being contributed by the GoI and SIDBI in the ratio of 4:1 respectively and has contributed Rs. 2477.78 crore to the corpus of the Trust up to May 31, 2016.