Consider the following statements about Credit Guarantee Fund Scheme ndash 1 It seeks...........

Economic Affairs Small Scale Industries

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Consider the following statements about Credit Guarantee Fund Scheme –

1. It seeks to cater Small and Medium enterprises only.

2. Objective of the scheme is to make available collateral free credit to tiny units.

Which of the statement given above is / are correct?

1 only

2 only

Both 1 & 2

Neither 1 nor 2

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Explanation:

It seeks to cater Micro and Small enterprises only.

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. The extent of guarantee cover is 85% for micro enterprises for credit up to Rs 5 lakh.