Loans up to ₹1 crore. What is the next procedure after that ? And you do n't have any security inside it. There is no collateral. There is no guarantee. What are the mistakes in which our loan can be cancelled? From Rs 1 crore to Rs 10 crore, the fee ranges from 0.75 to 1.35%. If someone's business collapses and he is not in a position to repay the loan, what will be his step? Hello, I am Nayan Tiwari and you all have started watching Jagran Business' special weekly program MSME Badlaav. In the MSME Badlaav program, we find answers to all the questions related to entrepreneurs who are small and medium entrepreneurs. If you also have a business idea but are unable to start it due to lack of funds, then we are going to tell you about a very special scheme which gives you a loan worth crores. That too without any guarantee. That scheme is Credit Guarantee Fund Trust for Micro and Small Enterprises i.e. CGTMSE. Founder Voice of Banking Ashwani Rana ji is present with us to answer all the questions related to this scheme. First of all, Sir, I welcome you to Jagran Business. And let's start with the first question related to this scheme, Credit Guarantee Fund Trust for Micro and Small Enterprises, how much loan can be taken from this, sir, see, in this you can take a loan of up to ₹1 crore. For G Micro users it is up to Rs 5 crore. Yes, for those who are small, they can take a loan of ₹5 to ₹1 crore. Sir, what is the method to take this loan? If anyone takes a loan, how and where can he apply? See, whoever wants to start his own manufacturing unit, service unit or trading unit or already has one running, in both the situations he can apply for this loan. For this loan, you have to apply by visiting the MSME portal. You also direct it to the bank. But mostly banks accept it through the portal only. So there is MSME portal. By going there, it is also necessary for you to register it on the MSME portal. You should also be registered and through that you can also apply. You can apply. Now for that MSME registration is also required. I need small , medium or micro keys. Then you need GST registration. Then you need that number 10. Then whatever your project report is, what do you want to do? How much funds are required for that? If you want to buy some machinery, how much machinery should you buy? How much do you require for that? So all this means you have to show the project report business plan. Yes, you will have to give that to the bank. So sir, who are eligible to take this loan ? That is, to whom is that loan given and for what purposes? See, the government is currently thinking of giving it to the youth. If someone wants to create a new unit, the government's focus is on that. We mean that any entrepreneur who is already working and wants to expand or start something new, if there are some facilities for SC ST or priority for women, then they can apply for it. Ashwini Sir, we would like to know that if a common man wants to start a business in a village or a small town, many times he does not know from where he will get this loan ? So where is it applied ? Meaning, try doing this online or offline in the bank or at any other place, the bank says that it prefers that you do it on the portal, so you can prefer the bank on the portal, then it goes to the bank. Then you can go and approach the bank. You can also directly approach the bank and talk to them about your project. Can do. Yes sir, once I apply as an entrepreneur, I will get the loan from the bank or the portal. What is the next procedure after that? In how many days does the bank give me the money? How does he give? Will I get all the money at once or what is the method? See, when the bank goes to you with your project report or proposal, it studies it thoroughly. Talks to you. If you are going to install a unit, where are you installing it? There is also physical verification that brother, you have space. Then after discussing what you want to buy, if you have to buy some machinery, then where will the machinery come from? After all that discussion with you, the money is given to you. Now if you want to buy machinery, the bank makes the payment directly to it. Now this CGT MSME is a scheme. Yes, under this, loans are being given to micro and small businesses. Yes sir, the biggest confusion is that this means a scheme. Who has any interference in this? How does it go through which stage ? Actually, this scheme is a guarantee from a guarantee corporation that if you took a loan, started your work and due to some reason your business did not run or it was running but got closed, something like this happened due to some policy, then when your loan becomes NPA or bad, then the bank gets 75% to 85% of the money from this guarantee corporation. That means that loan of yours has been sunk by the bank but you are not able to repay it and you do not have any security in it. There is no collateral. There is no guarantee. Yes, that means it is just a hypothesis that the bank has rights over the machinery you have purchased. If you have any stock that you are trading, its hypothecation is with the bank but there is no guarantee or any collateral pledged with the bank, if it is not pledged then the loan gets spoiled, in that situation this Guarantee Corporation gives 75 to 85% to the bank which is 75 for any common customer. If there are SC ST, then 85% of the loan is for them and for women and men, up to 90% is guaranteed cover. Guaranteed cover. Yes sir. So you have told us this very clearly. There is one more thing, sir. What happens when we apply for a loan, there are chances of it getting cancelled. What are those mistakes in which our loan can be cancelled? Yes, the bank feels that brother, these documents which I told you, its registration is required, GST is required, 10 number is required. This is the minimum requirement. Then, wherever you want to do it or whatever industry you want to set up, if the bank feels that it is not viable then it can cancel it. But generally it does not do so because the government also thinks that maximum entrepreneurs should be given more opportunities so that they can set up their own enterprises and also generate employment. Yes. Well, now you talked about collateral free. In simple words, you will not have to mortgage anything to take a loan. That means it is a guarantee free loan. Yes. But even after this, guarantee charges have to be paid many times. Yes, this is the scheme, sir. The fee for this credit guarantee, CGT MSC, has to be paid by the entrepreneur. Yes, it is different for that if the loan is up to 10 lakhs then there is a guarantee credit of 0.37% plus GST and from 10 lakhs to ₹ 1 lakhs and there is a guarantee of 0.55 paise, yes 100%, on top of that there is a guarantee, similarly from 50 lakhs to ₹ 1 crore there is a fee of 0.60% and from 1 crore to 10 crores there is a fee of 0.75 to 1.35%, which is just like insurance every year, consider your guarantee as one, you have a guarantee, there is insurance of this corporation and you have to file this every year in May. So Sir, we want to know whether the entrepreneur himself has to pay this guarantee charge or the government also has to pay it to the customer. Yes, so you have also given the data about what happens. This charge has to be paid once, ranging from 0.37% to 1.3%. So this happens annually. Yes, give it every year. Like when you get insurance for something, you have to pay premium every year. So this is just like a premium, your fee is called this guarantee charge. Yes Sir, we would like to understand that if an entrepreneur takes a loan of Rs 10 crore, in how many years will he have to repay it. No, what exactly are you taking as loan? Hmm. Brother, are you taking working capital or for working? Yes. If you have working capital then that loan will continue. This does not mean that you can continue it because it is a working capital, so with that you buy and sell something and if he has bought machinery then he does different vari for 3 to 5 years. The longer you take the loan, the more interest you will have to pay for it. Absolutely sir. Well, after taking this loan, the government gives us the guarantee of the loan. If someone's business collapses and he is not in a position to repay the loan, what will be his next step ? How can he take help from the government so that he can get guarantee cover on this loan. No, he will have to tell the bank only. The bank itself will recover this amount from this Credit Guarantee Corporation. Yes, that means the recovery of up to 75% of the NPA loan will be done by the bank itself. Meaning he doesn't have to do anything in it. That bank itself will recover it. Meaning we will have to go and tell the bank. Brother, what do you want to tell the bank? You did not make payment for 90 days. Meaning, if a loan is not repaid for 90 days, it becomes NPA. After that the legal proceedings start again. Yes, the bank will give you a notice. Then you will answer that you may feel that this loan can be extended or you will be able to pay it. Many times it happens that brother, it has happened due to some reason. So in that situation when it is finalized that the bank feels that now this money is lost , it has become NPA and it will not come back, then the bank applies for it. Under the CGT MSC scheme, if an entrepreneur is already running a business and has stopped it due to some reason and wants to start it again, will this scheme help him? To old previous traders whose business has come to a standstill due to some reason. If he has already done this scheme then he will not get it again. Yes, but you did not take it in this scheme and you have some credit with us and you have more limit and you want to take more. Then, the additional amount in this scheme, brother, first you have a limit of Rs 5 crore and you have given collateral in it. Now if you want 5 crore more then you can take that. The additional Rs 5 crore will be given to you under this scheme. Okay sir, I would like to understand easily how my limit will be decided? If I want to start a business, how much loan can I take? How will this be decided? Meaning I will approach. Should I tell you my plan or what is the method sir? No, you will tell me the plan. But what do you want? What is the requirement? So according to that, small scale people can get a loan of up to Rs 5 crore. And the medium ones, sorry, the micro ones, are available for up to five and the small ones can be taken for up to 10. So, if I need a loan, I will go to the bank. I will tell you my business plan. Accordingly, I will be put in that category and will be given money as per my need. Yes. Well, who are the people who do not come under the scope of this loan? It is possible that after watching our interview, many viewers may want to apply but they may not fall in this category. There is someone who does not come under the scope of this loan. Well, most of the industries are there but like self-help groups, yes. They do not fall within this scope. Do n't come. So he cannot take such a loan with this guarantee. This thing from self-help groups. It is not for the people associated with farming, it is not for them either. For them it is actually basically for manufacturing. It is for trading and for services. Yes, someone wants to start a service unit. If you want to provide service to the public then for that you should go for the service sector. Yes. Well, women are given more priority in this. What makes them special for women entrepreneurs? As I told you, the amount of guarantee for women is higher. They are given a guarantee of up to 90% and then when the priority is given in giving loan, if the sister is a woman then she should be given the loan so that she can start her own enterprise. We can start and Sir, any such question which is important for the audience to know and I am not able to ask you. Brother, there is a rate in this, we can talk about the rate of interest, different banks have different rates of interest, there is no fixed rate in this, private banks charge different rates of interest. Rest of the government banks are different. And depending on how much the loan is and for how long, the interest rate of different banks ranges from 9% to 14%. Absolutely. And so if you are confused about where to apply for this loan, then you can apply in your nearest bank. Secondly, while taking this loan, one must keep in mind that brother is a guarantee. This does not mean that we take a loan and after paying a small fee, we do not repay it. Well sir, in our country most of the people apply for loan very quickly. Like I also heard about this scheme that the government gives guarantee. So how right is it to apply for a loan? How is it right for everyone to participate in any such scheme or not? There are some limitations also. I mean, to whom will you not advise that they should not take a loan? It is not like that, whoever wants to start his own enterprise and is serious, yes, not just because the loan is available, it is guaranteed and we will take the loan, we will try that the business will run, if it does not work, if it does not work, if it goes bankrupt, then they will repay that money, it is not like that, this is not the thinking, this is the support of the government to the industrialists to start their business, so we should take advantage of that support positively. It is not that brother, yes take the money and distribute it here and there. If he drowns, he drowns. If such thinking is maintained then such thinking person cannot even take his business forward. Therefore, go with a positive thinking and avail the facilities that the government is providing. Because from time to time the government keeps adding more things to all these facilities. It expands. She keeps making amendments to it. Yes, so Ashwini Sir, thank you very much for talking to us and the viewers must have known everything about the Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme. If you have any other questions in your mind, you can ask us in the comment box. Jagran Business' special weekly show MSME Badlaav is especially for small and medium entrepreneurs. Please subscribe to the channel and watch the rest of the episodes. You will get a lot of help. Thank you.