Amendment in Notification No. S.O. 1443(E) Dated 18-4-2016 - Credit Guarantee Fund for Micro Units (CGFMU) - S.O. 4658(E) - Indian Law

MINISTRY OF FINANCE (Department of Financial Services) NOTIFICATION New Delhi, the 24th October, 2024 S.O. 4658(E). In partial modification of MINISTRY OF FINANCE (Department of Financial Services), New Delhi NOTIFICATIONS S.O. 1443(E) dated 18th April, 2016 , S.O. 1261(E) dated 16th April, 2020, S.O. 2668(E) dated 01st July, 2021, S.O. 457(E) dated 31st January, 2023 and S.O. 1361(E) dated 21st March, 2023 appearing in the Gazette of India: EXTRAORDINARY PART II Section 3 Sub-section (ii) publishing the Scheme of Credit Guarantee Fund for Micro Units (CGFMU) (hereinafter referred to as the said Scheme), the Central Government hereby makes the following amendments to the Scheme, namely :- 1. Paragraph 2 (xi) of Chapter I of Notification number S.O. 1443(E) dated 18th April, 2016 has been modified and shall read as: Micro Loan means any financial assistance by way of collateral free/third party guarantee free loan/limit (currently Rs.20 lakh ), extended by the lending institution to the eligible borrower, as per the guidelines prescribed by the Fund. Under the aegis of Pradhan Mantri MUDRA Yojana, MUDRA Ltd. has already been created to support development and financing of micro loans. The schematic interventions of MUDRA Ltd. have been named 'Shishu', 'Kishor' 'Tarun' and Tarun Plus to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth. They are presently defined as under: Shishu: covering loans upto 50,000/- Kishor: covering loans above 50,000/- and upto 5 lakh Tarun: covering loans above 5 lakh and upto 10 lakh Tarun Plus: covering loans above 10 lakh and upto 20 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the Tarun category. Further, Overdraft facility of Rs.10,000/- sanctioned under PMJDY accounts shall also be eligible to be covered under Credit guarantee Fund. 2. Paragraph 2 (xii) of Chapter I Notification S.O. 1443(E) dated on 18th April, 2016 has been modified and shall read as: Eligible borrower means new or existing micro unit / enterprise, including micro unit/enterprise set up under Joint Liability Group (JLG) framework, individually or jointly (irrespective of the availability of guarantee under JLG), falling under any sector covered under PMMY or as defined in the MSMED Act, 2006 (as amended from time to time), who meets eligibility criteria prescribed by the Fund and whose credit requirement does not exceed the specified limit under PMMY. Specified limit of the loan shall be Rs.20 lakh as defined above or such other amount as may be decided by the Fund from time to time. Further, Overdraft loan amount of Rs.10,000/- sanctioned under PMJDY accounts shall also be eligible to be covered under Credit guarantee Fund. Eligible borrower would also mean Self Help Groups who meet eligibility criteria prescribed by the Fund and whose loan amount is above Rs.10 lakh and upto Rs.20 lakh. 3. Paragraph 4 of Chapter II of Notification number S.O. 1443(E) dated the 18th April, 2016 , shall be read as: The Fund shall cover micro loans upto the specified limit (currently Rs.20 lakh) extended by Member Lending Institution(s) to an eligible borrower, provided that the lending institution applies for guarantee cover in respect of such loans so sanctioned within such time period and as per procedures prescribed by the Fund for the purpose. Further, Overdraft loan amount of Rs.10,000/- sanctioned under PMJDY accounts shall also be eligible to be covered under Credit guarantee Fund. It may be noted that micro loans under PMMY inclusive of overdraft under PMJDY, sanctioned since 8th April 2015 would qualify for guarantee cover under the scheme. The Fund may, at its discretion, approve/frame a list of Member Lending Institutions and /or their schemes, for which the guarantee cover will be available, or a negative list for which the guarantee cover shall not be available. 4. All other terms and conditions of the earlier Notifications on the Scheme shall remain unchanged. 5. The Notification shall come into effect from 24.10.2024 [F. No. 6/12/2024 Mission Office, DFS] PARSHANT KUMAR GOYAL, Jt. Secy.