Subsequent to the Central Budget announcements to set up various credit guarantee funds, a common trustee company in the name and style of National Credit Guarantee Trustee Company Ltd [NCGTC
] was set up by the Department of Financial Services, Ministry of Finance, Government of India to, inter alia, act as a common trustee company to manage and operate various credit guarantee trust funds.
NCGTC was incorporated under the Indian Companies Act, 1956 on March 28, 2014 with a paid-up capital of ₹10 crore, with its registered office at MSME Development Centre, C-11, G-Block, Bandra Kurla Complex, Bandra [East], Mumbai-400051.
Current Trust Funds under the trusteeship management of NCGTC:
1) Credit Guarantee Fund for Skill Development (CGFSD)
- Guarantees for Skill Development Loans by the member banks of IBA up to ₹ 1.5 lakh extended without collateral or third-party guarantee and the fund has a Target of 10-20 lakh loans to be guaranteed in a year.
2) Credit Guarantee Fund for Education loans (CGFEL)
- Guarantees for Education Loans by the member banks of IBA up to ₹ 7.5 lakh extended without collateral or third-party guarantee and the fund has a Target of 10 lakh loans to be guaranteed in a year.
3) Credit Guarantee Fund for Factoring (CGFF)
- Guarantees for domestic factored debts of MSMEs.
4) Credit Guarantee Fund for Micro Units (CGFMU)
- Guarantees for loans up to the specified limit(currently ₹ 10Lakh) sanctioned by Banks / NBFCs / MFIs / other financial intermediaries engaged in providing credit facilities to eligible micro units. Further, Overdraft loan amount of ₹ 5,000/- sanctioned under PMJDY accounts shall also be eligible to be covered under Credit guarantee Fund.
5) Credit Guarantee Fund for Standup India (CGFSI)
- Guarantees for credit facilities of over ₹ 10 lakh & upto ₹ 100 lakh sanctioned by the eligible lending institutions, under the Stand Up India Scheme(SC/ST/Women for setting up Greenfield enterprises).