Credit Guarantee Scheme for Subordinate Debt (CGSSD) for Stressed MSMEs
Objective:
•Subordinate debt will provide a substantial help in sustaining and reviving the MSMEs which have either become NPA or are on the brink of becoming NPA. •Promoter(s) may infuse this amount in MSME unit as equity and thereby enhance the liquidity and maintain debt-equity ratio.
•In a situation, where an outright loan is difficult, sub-debt with guarantee will provide the requisite financing to the MSME Units.
Key Benefits:
•Promoter(s) of the MSMEs are given credit equal to 50% of their stake (equity plus debt) or Rs. 75 lakh whichever is lower.
•Subordinate debt will provide a substantial help in sustaining and reviving the MSMEs which have either become NPA or are on the brink of becoming NPA. •Promoter(s) may infuse this amount in MSME unit as equity and thereby enhance the liquidity and maintain debt-equity ratio.
•In a situation, where an outright loan is difficult, sub-debt with guarantee will provide the requisite financing to the MSME Units.
Key Benefits:
•Promoter(s) of the MSMEs are given credit equal to 50% of their stake (equity plus debt) or Rs. 75 lakh whichever is lower.
