Credit Guarantee Scheme for Subordinate Debt (CGSSD)
- Posted By
10Pointer
- Categories
Economy
- Published
28th Aug, 2020
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- Union Ministry of MSME has launched subordinate debt scheme to provide financial facility to stressed MSMEs.
- It aims to provide emergency credit support to MSMEs impacted by coronavirus lockdown.
- Under CGSSD the government has operationalized Rs 20,000 crore stressed fund which is likely to benefit around 2 lakh medium and small entrepreneurs.
- CGSSD is a part the Rs 20.97 lakh crore Aatma Nirbhar Bharat Abhiyan package.
- The highlights of the scheme are
- It seeks to extend support to the promoters of the operational MSMEs which are stressed and have become NPA as on April 30, 2020.
- The promoters of the MSME unit will be given credit equal to 15 per cent of stake in the company or Rs 75 lakh, whichever is lower.
- As per the latest norms, this scheme seeks to extend support to MSMEs whose accounts have been standard as on March 31, 2018, and have been in regular operations, either as standard accounts, or as NPA accounts during financial year 2018-19 and 2019-20.
- Fraud/wilful defaulter accounts will not be considered under the proposed scheme.
- The scheme is valid for stressed MSME units which were Special Mention Accounts (SMA-2) and NPA as of April 30, 2020, who were eligible for restructuring as per RBI guidelines on the books of the lending institutions.
- Special Mention Accounts are those assets/accounts that shows symptoms of bad asset quality in the first 90 days itself or before it being identified as NPA.
