Current Context: A ‘Distressed Assets Fund-Subordinate Debt for MSMEs’ is the credit guarantee scheme for sub-ordinate debt (CGSSD).
a. Rs 30000 crore
b. Rs 15000 crore
c. Rs 20000 crore
d. Rs 10000 crore
- The scheme is launched by Union Minister for MSME Nitin Gadkari.
- The scheme will provide Rs 20000 crore guarantee cover to about two lakh MSMEs.
- The ‘Distressed Assets Fund-Subordinate Debt for MSMEs’ is a part of Atma Nirbhar Bharat package and aims to sub-ordinate the debts to the promoters of operational but stressed MSMEs.
- The scheme will extend the support to the promoters of the operational MSMEs which are stressed and have become NPA as on 30th April 2020.
- To promoters of such MSMEs will be given a credit equal to 15% as equity of their stake or finance of Rs 75 lakh, whichever is lower.
- Promoters infuse the amount in the MSME unit as equity and enhance the equity and maintain the debt-equity ratio.
- 90% of guarantee coverage for the sub-debt will be given under the scheme and 10% would come from concerning promoters.
- The maximum tenure of repayment is 10 years.
Question:
Q.1 What amount of guarantee cover will be offered to MSMEs under Distressed Assets Fund-Subordinate Debt for MSMEs’ which is the credit guarantee scheme for sub-ordinate debt (CGSSD)?a. Rs 30000 crore
b. Rs 15000 crore
c. Rs 20000 crore
d. Rs 10000 crore
