Government of India: An Angel Investor?
Yes, it is true! Government of India (GoI) has now become an angel investor to help those startups & entrepreneurs which fall under the category Small and Micro enterprises. The mechanism which is used by GoI is “Credit Guarantee Fund Trust for Small & Micro Enterprises” or CGTSME for short, which allows bank to grant loan up to the sum of Rs 1 cr. to small and micro enterprises without any collateral or security.
What is CGTSME?
CGTSME is a credit facility extended by GoI through banks, also called Member lending Institutions or MLI, to provide credit facilities to a single eligible borrower in Micro & Small Enterprise sector for credit facility by way of term loan and/or working capital facilities, such as Cash Credit or Overdraft, without any collateral security and/or Third Party guarantee.
Extent of Guarantee Cover through CGTSME
With effect from 2nd January 2009, the Trust shall provide Guarantee Cover as under:
| Category | Maximum extent of Guarantee Coverwhere Credit Facility is | ||
| Up to Rs. 5 lac | Above Rs. 5 lac & up to Rs. 50 lac | Above Rs. 50 lac & up to Rs. 100 lac | |
| Micro Enterprises | 85% of the amount in default, subject to a maximum of Rs. 4.25 lac | 75% of the amount in default, subject to a maximum of Rs. 37.50 lac | Rs. 37.50 lac + 50% of the amount in default above Rs. 50 lac, subject to overall ceiling of Rs. 62.50 lac |
| Women Entrepreneurs / Units located in NE Region & Sikkim (Other than Credit Facility up to Rs. 5 lac to Micro Enterprises) | 80% of the amount in default, subject to a maximum of Rs. 40 lac | Rs. 40.00 lac + 50% of the amount in default above Rs. 50 lac, subject to overall ceiling of Rs. 65.00 lac | |
| All other category of Borrowers | 75% of the amount in default, subject to a maximum of Rs. 37.50 lac | Rs. 37.50 lac + 50% of the amount in default above Rs. 50 lac, subject to overall ceiling of Rs. 62.50 lac | |
*Source- www.cgtmse.in
Who all are covered under the scheme of CGTSME?
The scheme includes small businesses, professionals, self employed persons and all other service enterprises under the ambit of Micro & Small Enterprises (except retail trade).
The Procedure of applying for CGTSME credit
In order to avail the facility of CGTSME, you have to approach a bank with the project. After the bank has appraised the project and deemed it worthy and if it does fall within the gambit of CGTSME they will finance the project accordingly and will not ask for any collateral.
The Reality
The reality is of course a little different. Though the facility is open to the banks, many still insist on the collateral or worse don’t advertise it much. Record of Public Sector Banks is a bit better than Private sector banks.
In the end, I would just like to say that if you want to avail this facility then you have to follow it up with the bank, but if you succeed in doing so, then you will be able to achieve your dreams courtesy Government of India.
(Author: Yogesh Jain)
The registered entrepren eur in Chikamnglur dist. women training programmes- in tailormade activities and computer knowledge based activites done. Now applied to CGTSME and MSME. 70% MSME contribution
with the fee of 1.5% for 50 lakhs fee Rs 75,000/- 10% entrepren eur
contribution and 20% bankers share low interest. (SIDBI 20 % capital subsidy and 30% state subsidy).
We have discussed with MSME, SIDBI AND DIC.
WE HAVE TO CONTACT WITH CGTSME, MUMBAI IN SEPTEMBER MIDDLE.
AND GET THE PROJECT OF ONE CRORE PROJECT FOR CHIKMANGLUR DIST.AND ON CRORE FOR SHIMOGA DIST. KARNATAKA
ONE CRORE FOR ERNAKULUM DIST. KERALA
PLEASE CO-OPERATE WITH US.
WITH THANKS
TRESSA PETER
EMAIL;: treesa.peter@yahoo.com
Ms.Tressa
Wish you good luck and all success in your hard work and your project
it is not easy but sincere efforts will surely bring you result.
Im trying to start a small business, your advise in this regard shall be highly appreciated.
regards,
Aijaz
RAGHUVAMSI IRON ORE PELLETZATION TECHNOLOGIES
(GREEN FIELD PROJECT) SEEKING FOR INVESTORS
GOOD MORNING, I am I.V. SUBBA RAO, I have developed advanced new technology, it is named as iron ore pellitization.. Still it is not introduced in India for small medium and major sponge iron manufacturing industries.
We are planning to set up 50 T.P.D Commercial production plant, its cost is 27 Cores, but we are not financially sound enough. We have applied for patent rights on JULY 2008, regarding this technology so many domestic and other country small scale sponge iron manufactures are contacting through mails and through phones. Lot of customers is interesting to utilize our technology, while before that they want to see the operation plant.
If I set up 50 TPD plant i.e., both ways it is like to pellet plant as well as commercial production plant. If any one help for us financial loan of Rs 24. 0 Cores (Indian currency). I will set up the plant as early as possible (6.0 to 9.0months).
After starting the commercial production we will start clearing ours loan immediately, other wise if want sponge iron material we will supply the material (just like barter system).
Through this technology small, medium and major sponge iron manufacturing industries (Karnataka, Orissa, Jharkand, Chatisgarh, West Bengal and Madhya Pradesh) can use this iron ore power easily. Because of this technology sponge iron and steel manufactures can get lot of marzines / profits, the Indian Sponge Iron /DRI Economic growth turn over gone up to 1,00,000 Cores per annum.
This product (fines using) is burning problem of India and aboard for sponge iron and steel manufactures. This is unique technology; I have received so many mails with in short time in India and abroad. If any one can give me an appointment I will meet you and explain all other details.
After starting the commercial production we will start clearing ours loan immediately, other wise if want sponge iron material we will supply the material (just like barter system).
I am waiting for your early response.
PERSONNEL NOTE: – OUR PATENT IS UNDER PENDING.
Thanking you,
RAGHUVAMSI TECHNOLOGIES
Ho.No.14-5-11.
OPP.BATCHU SRI DEVI HOUSE
SHIVALAYAM STREET
PEDDAPURAM
PIN:-533 437
ANDHARA PREDESH
INDIA-533437.
MOB:-09490188826
i have developed a method to control mosquito by herbal formulation tocommercialise this i need money of 25lakhs patent applied any body is interested to join as partner i acept.