FAQs on Micro, Small & Medium Enterprises (MSMEs)

The new definition of MSME, applicable with effect from 01.07.2020, is based on the composite criteria of turnover limits and limits of investment in plant and machinery or equipment. The same limits apply to both manufacturing enterprises and service enterprises.

The following Table shows the classification of MSMEs into micro, small and medium categories based on various combinations of situations as regards net investment in plant and machinery or investment and net turnover:

Notes:

1. 1. In the above table cell No. 1 represents a situation where net investment in plant and machinery of an enterprise does not exceed Rs. 1 crore and net turnover does not exceed Rs. 5 crores and so on.
   2. Investment in plant and machinery or equipment means “the net investment in plant and machinery or equipment” (net of depreciation as per IT Act and IT Rules) and not original cost or book value.
   3. Net Turnover means Total turnover less export turnover.
   4. If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and shall be placed in the next higher category.
   5. No enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
   6. All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.

Summary:

Para 2 of the NMN deals with “becoming a micro, small or medium enterprise” and provides as under:

(1) Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal (www.udyamregistration.gov.in). Filing is on self-declaration basis. There is no requirement to upload documents, papers, certificates or proof.

(2) On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal) will be assigned a Permanent Identity Number to be known as “Udyam Registration Number”.

(3) An e-certificate, named “Udyam Registration Certificate” will be issued on completion of the registration process.

Para 6 of the NMN deals with registration process and provides as under:

(1) The form for registration shall be as provided in the Udyam Registration portal.

(2) There will be no fee for filing Udyam Registration.

(3) Aadhaar number shall be required for Udyam Registration.

(4) The Aadhaar number shall be

• • • of the proprietor in the case of a proprietorship firm,
    • of the managing partner in the case of a partnership firm and
    • of a karta in the case of a Hindu Undivided Family (HUF).

(5) In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.

(6) In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on self-declaration basis.

(7) No enterprise shall file more than one Udyam Registration. Any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.

(8) Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updation process shall be liable to such penalty as specified under section 27 of the MSMED Act.

(9) In case of any proprietorship enterprise not registered under any Act or Rules of the Central Government or the State Government, the proprietor may use his or her PAN for registration of the enterprise in the Udyam Registration portal and for all other types of enterprises PAN shall be mandatory.

Para 7 of the NMN deals with registration of existing enterprises and provides as under:

(1) All existing enterprises registered under EM±Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020. The deadline for migration from EM-II/UAM to Udyam is 30.06.2022.

If EM-II and UAM enterprises do not migrate to Udyam on or before 30.06.2022, they would be treated as unregistered till they file Udyam Registration.

(2) All enterprises registered till 30th June, 2020, shall be re-classified in accordance with this notification.

(3) The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 31st day of March, 2021. [This period was extended to 30.06.2022].

(4) An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.

The new definition applies to existing enterprises as on 30.06.2020 also. If existing enterprises are registered under Udyog Aadhaar or EM Part II, the same will be reclassified as per the new definition. The UAM registration shall remain valid only till 31.03.2021. All existing enterprises registered under UAM as on 30.06.2020 need to re-register under Udyam on or after 01.07.2020 before their UAM registration expires on 31.03.2021.

No. There is no particular form of legal organisation to be adopted to be eligible for benefits under the MSMED Act. Benefits under MSMED Act will be available so long as the enterprise satisfies the investment and turnover limits as above and has filed Entrepreneur’s Memorandum (EM) or Udyog Aadhaar Memorandum (UAM) or Udyam Registration. It does not matter whether the enterprise is a proprietorship or partnership firm or a limited liability partnership (LLP) or a company or Hindu undivided family (HUF).

According to Notification No. SO 1642 (E), dated 29-9-2006, an enterprise may be:

• proprietorship,
• Hindu undivided family,
• association of persons,
• co-operative society,
• partnership firm,
• company,
• undertaking, or
• any other legal entity

The term ‘any other legal entity’ used in Notification No. 1642 (E) is wide enough to cover limited liability partnership and formed and registered under the Limited Liability Partnership Act, 2008. Even Self-Help Groups can be considered as “enterprises”.

However, if MSME is a start-up, it must be a partnership firm or LLP or a private limited company to avail benefits under DPIIT’s Start up Notification No. GSR 127(E), dated 19.02.2019 [hereinafter referred to as Latest Start-up Notification (LSN)]

No, an MSME “enterprise” may be :

• • An industrial undertaking; or
  • A business concern; or
  • Any other establishment.

To fall within the definition of the term “enterprise”, the service provider should be an industrial undertaking or a business concern or any other establishment. It appears that an individual service provider without an undertaking/concern/establishment would not qualify as an “enterprise”.

An individual service provider without an undertaking establishment or concern is not an “enterprise” as defined in MSMED Act.

Thus, a CA firm or a CA having an office shall be an “enterprise”. An individual CA practising as such and not having any establishment will not be a “service enterprise”. A photography studio is a service enterprise. An individual professional photographer is not a service enterprise. Likewise, plumbers, gardeners, cobblers, puncture wallahs, road-side tea vendors -….those that do not have any undertaking/establishment – it appears these are not “enterprises”.

The following Table summarises benefits available to MSMEs filing Udyam Registration:

A micro/small enterprise which has filed the EM/UAM/Udyam Registration may avail the following benefits under the MSMED Act:

1. 1. Protection against delayed payments by buyers of goods/services to a micro/small enterprise (section 15 of the MSMED Act) and right to interest on delayed payments for micro & small enterprises if section 15 is violated (section 16 of the MSMED Act).
   2. Time-bound settlement of payment-related disputes with buyers of goods/services through conciliation and arbitration (Sections 18 to 21 of the MSMED Act)
   3. Central Government’s measures for promotion and development (Section 9 of the MSMED Act).
   4. RBI’s credit policies for ensuring timely and smooth flow of credit (Section 10 of the MSMED Act).
   5. Preference policies (preference to micro enterprises in respect of goods and services procured by Government Departments/aided institutions/PSEs) notified by Central/State Government (Section 11 of the MSMED Act).

The above benefits/facilities are available under the MSMED Act to all micro enterprises or small enterprises which have filed EM/UAM/Udyam registration whether they are manufacturing/production micro/small enterprises or service micro/small enterprises.

A micro/small enterprise which has filed the EM/UAM/Udyam Registration may avail the following benefits under the MSMED Act:

1. 1. Protection against delayed payments by buyers of goods/services to a micro/small enterprise (section 15 of the MSMED Act, 2006) and right to interest on delayed payments for micro & small enterprises if section 15 is violated (section 16 of the MSMED Act, 2006).
   2. Time-bound settlement of payment-related disputes with buyers of goods/services through conciliation and arbitration (Sections 18 to 21 of the MSMED Act).
   3. Central Government’s measures for promotion and development (section 9 of the MSMED Act).
   4. RBI’s credit policies for ensuring timely and smooth flow of credit (section 10 of the MSMED Act).
   5. Preference policies (preference to micro/small enterprises in respect of goods and services procured by Government Departments/aided institutions/PSEs) notified by Central/State Government (section11 of the MSMED Act).

The above benefits/facilities are available under the MSMED Act to all micro enterprises or small enterprises which have filed EM/UAM/Udyam registration whether they are manufacturing/production micro/small enterprises or service micro/small enterprises.

The following benefits/facilities are available under the MSMED Act to a medium enterprise which has filed the EM/UAM/Udyam Registration whether the enterprise is a manufacturing/production enterprises or service enterprises:

1. 1. Central Government’s measures for promotion and development (section 9 of the MSMED Act)
   2. RBI’s credit policies for ensuring timely and smooth flow of credit (section 10 of the MSMED Act)

A medium enterprise is not entitled to the benefits of

1. 1. Protection against delayed payments by buyers of goods/services to a micro/small enterprise (section 15 of the MSMED Act, 2006) and interest on delayed payments (section 16 of the MSMED Act, 2006)
   2. Time-bound settlement of payment-related disputes through conciliation and arbitration (Sections 18 to 21 of the MSMED Act, 2006)
   3. Purchase Preference policies (section 11 of the MSMED Act)

MSMEs are entitled to tax holiday under section 80-IAC of the Income-tax Act, 1961 only if they are start-ups as defined in the Latest Start-up Notification (LSN) and satisfy the conditions stipulated in section 80-IAC¹. For non-start-ups MSMEs, no tax holiday is available under the Income-tax Act.

No. Reservation of items for manufacture by SSIs/MSMEs was gradually phased out over the years and finally totally ended in 2015. Presently, there are no items reserved for manufacture exclusively by MSMEs.

Only partnership firms, LLPs and Companies can have both the statuses of “MSME” under MSMED Act and of start-up under the LSN. They will be regarded as MSMEs provided they satisfy the investment limits in the definitions of MSME under the MSMED Act. Proprietorships, HUFs, Public limited companies, AOPs, Co-operative societies can be MSMEs but not start-ups.

MSME is defined by the MSMED Act. Start-up is defined by the DPIIT’s Start-up Notification No. GSR 127(E), dated 19.02.2019 [i.e. Latest Start-up Notification (LSN)]. An enterprise can be an MSME as well as a start-up by satisfying the definitions of NMN as well as LSN respectively. The distinction between MSME and start-up is summed up as under:

Yes, an enterprise can claim benefits under both MSMED Act as well as LSN if:

1. 1. It is a partnership firm or LLP or private limited company and 10 years has not elapsed from the date of its incorporation. (However, from tax benefits under Income-tax Act, 1961 point of view, it should be a private limited company); and
   2. It satisfies the composite criteria of turnover and investment limits under the NMN and it has filed Udyam Registration/UAM/EM.

[Refer Taxmann’s Taxation of Start-ups and Investors (5^th Edition) for more details]

No. Benefits to a start-up under section 80-IAC of the Income-tax Act, 1961 are dependent on satisfying conditions under section 80-IAC and LSN. Not filing Udyam Registration will not result in denial of benefits under Income-tax Act, 1961 though it will result in loss of benefits under MSMED Act (See Q.1.7 to Q.1.10 above).

[Refer Taxmann’s Taxation of Start-ups and Investors (5^th Edition) for more details]

According to section 2(85) of the Companies Act, 2013, a company is a ‘small company’ if it satisfies the following conditions:

1. 1. It is not a public company, e., it is a private company or a One Person Company.
   2. Its paid-up share capital does not exceed Rs. 50,00,000 or such higher amount as may be prescribed which shall not be more than Rs. 10,00,00,000. Note: The Central Government has not notified a higher paid-up share capital limit than Rs. 50,00,000 under the above sub-clause as yet. Thus, by default, paid-up share capital for small company is Rs. 50,00,000 as of now.
   3. Its turnover as per its profit and loss account for the immediately preceding financial year does not exceed Rs. 2,00,00,000 or such higher amount as may be prescribed which shall not be more than Rs. 100,00,00,000. Note : The Central Government has not exercised its power to notify a turnover limit higher than Rs. 2 crores but not exceeding Rs. 100 crores. Thus, by default, turnover limit for small company remains Rs. 2 crores.
   4. It is not a holding company or a subsidiary company.
   5. It is not a company registered under section 8 of the Act.
   6. It is not a company or body corporate governed by any special Act.

Thus, an MSME company which is a private limited company or OPC qualifies as a small company if conditions in section 2(85) of the Companies Act, 2013 are satisfied. The Small company is entitled to certain relaxations and exemptions in provisions of the Companies Act applicable to them.

No. However, it should file Udyam Registration so that it can avail benefits under the MSMED Act.

No. The following benefits are available to small businesses under the Income-tax Act, 1961 regardless of whether they file Udyam Registration

1. 1. An individual or HUF or partnership firm carrying on business with turnover not exceeding Rs. 2 crores in any financial year can opt for presumptive taxation scheme under section 44AD of Income-tax Act, 1961 whereby it can offer to tax 8% of its turnover as taxable business income (6% if turnover is from cashless payment modes). A simple SUGAM ITR form can be filed. No books of account need be maintained. Compulsory audit of accounts under section 44AB not applicable.
   2. Any small business which falls under clause (a) of section 44AB of Income-tax Act, 1961 and whose turnover or gross receipts in any financial year does not exceed Rs. 5 crores is exempt from compulsory tax audit under section 44AB with effect from assessment year 2020-21 if:
      • • aggregate of all amounts received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceed 5 per cent of the said amount; and
        • aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed five per cent of the said payment
        • If such small business does not comply with above conditions, then turnover threshold exemption limit for audit is Rs. 1 crore.
   3. A company whose turnover does not exceed Rs. 400 cr. in a financial year is entitled to concessional rate of tax of 25% applicable to small and medium companies as per the Finance Act.

For start-ups, following tax benefits applicable whether they satisfy MSME definition or not

1. Start-up LLPs and PLCs entitled to tax holiday under section 80-IAC of the Income-tax Act, 1961

2. Start-up PLCs entitled to angel tax exemption

3. A start-up entity which falls under clause (a) of section 44AB of Income-tax Act, 1961 and whose turnover or gross receipts in any financial year does not exceed Rs. 5 crores is exempt from compulsory tax audit under section 44AB with effect from assessment year 2020-21 if

• • • aggregate of all amounts received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceed 5% of the said amount; and
    • aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed five per cent of the said payment

4. A company whose turnover does not exceed Rs. 400 cr. in a financial year is entitled to concessional rate of tax of 25% applicable to small and medium companies as per the Finance Act

[Refer Taxmann’s Taxation of Start-ups and Investors (5^th Edition) for more details]

The Government has decided to expand the Emergency Credit Line Guarantee Scheme (ECLGS), launched as part of Aatma  Nirbhar Bharat Package in May, 2020, by Rs. 1.5 lakh crore. Under the expanded scheme, limit of admissible guarantee and loan amount is proposed to be increased above existing level of 20% of outstanding on each loan. Sector wise details will be finalized as per evolving needs. The overall cap of admissible guarantee is thus raised from Rs. 3 lakh crore to Rs. 4.5 lakh crore [PIB Press Release, dated 28.06.2021.] [See Appendix 11]

The following is summary of the latest COVID-19 relief package announced on 28.06.2021 as under:

The summary of Rs. 6,28,993 crore COVID-19 relief package announced by the Central Government as 28-6-2021 [See PIB’s Press Release, dated 28.06.2021, in Appendix 11] is as under:

Lakh CR. Loan Guarantee Scheme for COVID Affected Sectors [LGSCAS] 

Health Sector: Rs. 50,000 crore

• • Aimed at up scaling medical infrastructure targeting under- served
  • Guarantee cover for expansion and new projects related to health/ medical infrastructure in cities other than 8 metropolitan
  • Guarantee coverage: 50% for expansion & 75% for new projects
  • For Aspirational Districts, guarantee cover of 75% for both new projects and
  • Maximum loan: 100 crore; Guarantee duration: Up to 3 years Interest rate capped at 7.95%
  • Guarantee by National Credit Guarantee Trustee Company Limited

Other Sectors: Rs. 60,000 crore

• • Interest rate capped at 25% p.a.
  • Decisions at later stage based on evolving needs Normal interest without guarantee cover is 10-11%

Additional 1.5 Cr. for Emergency Credit Line Guarantee Scheme

• • Launched as part of Atma Nirbhar Bharat Package in May,
  • ECLGS-1.0, 2.0 and 3.0 have resulted in credit disbursal of 2.69 lakh Crore to 1.1 crore units by 12 Public Sector Banks, 25 Private Sector Banks, and 31 Non-banking Financial
  • Contact intensive sectors already covered and shall be continued. 4,000 crore given to these sectors through this window so far.
  • Limit of admissible guarantee and loan amount proposed to be increased above existing level of 20% of outstanding on each
  • Sector wise details will be finalized as per evolving
  • Overall cap of admissible guarantee to be raised from Rs. 3 lakh crore to 4.5 lakh crore.

Credit Guarantee Scheme to facilitate loans to 25 lakh persons through Micro Finance Institutions (MFIs)

• • Guarantee will be provided to Scheduled Commercial Banks for loans to new or existing NBFC-MFIs or MFIs for on lending upto 1.25 lakh to approximately 25 lakh small borrowers.
  • Interest Rate on Loans from banks to be capped at MCLR plus 2%.
  • Maximum loan tenure 3 years, 80% of assistance to be used by MFI for incremental lending, interest at least 2% below maximum rate prescribed by
  • Focus on new lending, not repayment of old
  • Loans to borrowers to be in line with extant RBI guidelines such as number of lenders, borrower to be member of JLG, ceiling on household income &
  • All borrowers (including defaulters upto 89 days)
  • Guarantee cover for funding provided by MLIs to MFIs/NBFC- MFIs till March 31, 2022 or till guarantees for an amount of Rs. 7,500 crore are issued, whichever is
  • Guarantee upto 75% of default amount for upto 3 years through National Credit Guarantee Trustee Company (NCGTC).
  • No guarantee fee to be charged by

Reviving Tourism: Financial Support to more than 11,000 registered tourist guides/travel and tourism stakeholders

Under new Loan Guarantee Scheme for COVID Affected Sectors, working capital/personal loans will be provided to people in tour- ism sector to discharge liabilities and restart businesses impacted due to COVID-19

The scheme will cover:

• • 10,700 Regional Level Tourist Guides recognised by Minis- try of Tourism and Tourist Guides recognised by the State Governments
  • Travel and Tourism Stakeholders (TTS) recognized by Min- istry of Tourism (904)

Loans will be provided with 100% guarantee up to the following limits:

• • 10,00,000 for TTS ( per agency)
  • 1,00,000 for tourist guides licenced at Regional or State level

No processing charges, waiver of foreclosure/prepayment charges. No additional collateral requirement Scheme to be administered by the Ministry of Tourism through NCGTC

Free tourist VISA to 5 lakh tourists

• • 93 million foreign tourists  visited  Indian in 2019,  spent US $30.098 billion on leisure and business.
  • Average daily stay for a foreign tourist in India is 21 Average daily spending of a tourist in India is around $34 (Rs. 2400).
  • Once Visa issuance is restarted, the first 5 lakh Tourists Visas will be issued free of charge
  • Benefit will be available only once per
  • The scheme will be applicable till 31st March, 2022 or till 5,00,000 visas are issued, whichever is earlier.
  • Total financial implication Rs. 100 Crore.

Extension of Atmanirbhar Bharat Rozgar Yojana

Launched on 1st Oct, 2020. Incentivizes employers for creation of new employment, restoration of loss of employment through EPFO. Approved outlay 22,810 crore for 58.50 lakh estimated bene- ficiaries. Subsidy provided for two years from registration for new employees drawing monthly wages less than 15000 for:

Both Employer’s and Employee’s share of contribution (total 24% of wages) for establishment strength upto 1000

Only Employee’s share (12% of wages) in case of establish- ment strength of more than

Benefit of Rs. 902 Cr given to 21.42 lakh beneficiaries of 79,577 establishments till 18-6-2021. Last date of registration under the scheme extended from 30-6- 2021 to 31-3-2022.

Rs. 88,000 Crore Boost to export insurance cover

• • Export Credit Guarantee Corporation (ECGC) promoters exports by providing credit insurance
  • Its products support around 30% of India’s merchandise
  • Proposed to infuse equity in ECGC over 5 years to boost export insurance cover by 88,000 Cr.

Keeping in view the hardship faced by MSMEs during COVID 19 pan- demic crisis, the Central Government has announced several measures intended to provide the necessary support to deal with the current economic crisis such as:

• • Revised definition of MSMEs
  • 20,000 crore Subordinate  Debt  for  Stressed  MSMEs
  • 3 lakh crore Collateral-free Automatic Loans enhanced to 4.5 lakhs crores vide PIB Press Release, dated 28.06.2021
  • 50,000 crore Equity infusion for MSMEs through Fund of Funds
  • Global tenders to be disallowed up to 200 crore
  • All receivables of MSMEs will be cleared by Government and PSU in 45

LGSCAS is a scheme to provide guarantee by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs) for fund based or non-fund based facility up to Rs.100 crore extended by Scheduled Commercial Banks (SCBs) to eligible projects in the healthcare sector for setting up of or for modernising/expansion of:

• • (i) hospitals/dispensaries/clinics/medical colleges/pathology labs/diagnostic cen- tres;
  • (ii) facilities for manufacturing of vaccines/oxygen/ventilators/ priority medical devices and
  • (iii) public healthcare facilities. The said projects should be in non-Metro cities.

The Scheme is a specific response to the unprecedented situation aris- en due to COVID-19. It seeks to ramp up COVID related healthcare infrastructure and services in the country and also to be future ready.

All Scheduled Commercial Banks (SCBs) are eligible as MLIs.

The Scheme would be applicable to all loans sanctioned under LGSCAS during the period from May 07, 2021 to March 31, 2022 or till guarantees for an amount of Rs.50,000 crore are issued under LGSCAS, whichever is earlier.

The Scheme is open for assistance to new units (Greenfield projects) as well as existing eligible units going in for expansion/modernization etc. (Brownfield projects) in the sector(s) specified.

No.

The entire funding provided under LGSCAS shall be provided with credit guarantee coverage by NCGTC under the Scheme, as per details below :

• • For Brownfield projects – 75%
  • For Greenfield projects – 50%; however, projects in aspirational districts shall qualify for 75% cover;

• The eligibility criteria under the Scheme are as under:
  • Total loan requirement upto Rs.100 crore (including fund based and non-fund based facility) ;
  • Project coming up in a non-Metropolitan area ;
  • Loan being provided out of COVID Loan Book of the SCBs ;
  • Project pertains to the healthcare sector for setting up of or mod- ernisation/expansion of hospitals/dispensaries/clinics/medical colleges/pathology labs/diagnostic centres; manufacturing of vaccines/oxygen/ventilators/priority medical devices; and public healthcare facilities.
  • Loans provided in individual capacity will not be covered under the Scheme.

The borrower shall approach one of the SCB for financial support, which shall assess the project based on merits and sanction need based assistance out of its Covid Loan Book. It shall then apply to NCGTC on an IT platform to be provided for the purpose certifying certain details, based on which guarantee shall be issued.

No. The Scheme is available only for projects in non-Metro areas. Hence, you are ineligible.

Municipal areas of Chennai, New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad, Ahmedabad & Pune. Projects coming up in the suburbs of these cities would be eligible for coverage.

No. The Scheme is available only for projects in non-Metro areas. Hence, you are ineligible.

Yes, you are eligible for assistance as per area of setting up of the proj- ect and need to meet the other terms of the scheme guidelines. Your project shall be treated as Greenfield as it is a new project.

Such a project shall be treated as Greenfield project and would be eligible for guarantee coverage of 75%.

No.

Yes, interest  rates  on  loans  under  LGSCAS  shall  be  capped  at  7.95% p.a. during the period of guarantee cover. The MLI shall be at liberty to revise the rate thereafter as per extant guidelines.

The Scheme may be operated in combination with applicable interest subvention scheme(s) and/or PPP-VGF scheme, as far as feasible.

Yes, subject to the cap specified above.

Tenor of the loan, moratorium period and other aspects like margin, commission on non-fund based limit, value of collateral etc. shall be as decided by the MLI.

Indicative turnaround time for loans under the Scheme shall be the same as those prescribed by Department of Financial Services for credit support in the context of COVID-19 pandemic.

No, NCGTC will not charge any guarantee fee under the Scheme.

This is left to the discretion of the MLI. However, guarantee shall be available only on the uncovered portion of the loan.

The Credit Guarantee from NCGTC would be unconditional and irre- vocable

Approval of RBI is being requested for assigning zero risk weight to the credit amount covered under LGSCAS till the period of guarantee cover.