MSME Minister Nitin Gadkari launches CGSSD

Micro, Small and Medium Enterprises, MSME, Minister Nitin Gadkari has launched the Credit Guarantee Scheme for Sub-ordinate Debt, CGSSD.
As per the Scheme, guarantee cover worth twenty thousand crore rupees will be provided to the promoters who can take debt from the banks to further invest in their stressed MSMEs as equity.
The scheme seeks to extend support to the promoters of the operational MSMEs which are stressed and have become NPA as on 30th April of this year.
Under the scheme, Promoters of the MSMEs will be given credit equal to 15 percent of their stake or 75 lakh rupees whichever is lower.
There will be a moratorium of 7 years on payment of principal whereas maximum tenure for repayment will be 10 years.
The scheme will provide support to around 2 lakh MSMEs and will help in reviving the economic activity in and through this sector.