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 Jeevandeep Building, Sansad Marg, New Delhi 110001. The corporate office of NCGTC is functioning from 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.