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OVERVIEW FINANCIAL STATEMENTS

NBFCs contribute to the financial system by enhancing accessibility, fostering innovation,
and addressing the diverse financial needs of businesses, especially those in underserved
or specialized sectors.

Credit Guarantee Scheme for
Subordinate Debt (CGSSD)

The Scheme was introduced in June 2020 to provide
credit facility to the stressed MSMEs. The objective of
the scheme was to provide credit facility through lending
institutions to the promoters of stressed MSMEs viz. SMA-
2 and NPA accounts who are eligible for restructuring as
per RBI guidelines in the books of the Lending institutions.
The promoter(s) would infuse the credit in the MSME unit as equity, quasi equity or sub-debt.
The Scheme has come to an end on March 31, 2023 and no fresh guarantee is issued under
the Scheme.

Credit Guarantee Scheme for

PM SVANidhi (CGS-PMS)

The COVID-I9 pandemic and consequent lockdowns
had adversely impacted the livelihoods of street vendors.
To support them, the Ministry of Housing and Urban
Affairs (MoHUA), Government of India, announced
a scheme “PM Street Vendor’s AtmaNirbhar Nidhi
(PM SVANidhi)” to provide credit for working capital to street vendors in urban areas to
resume their business. The Scheme encouraged street vendors to formalize their businesses
and adopt digital payment methods.

Credit Guarantee Scheme for Co-

Lending (CGSCL)

“Co-Lending Model” introduced by RBI focuses on
improving the flow of credit to the unserved and
underserved sector of the economy and make available
funds to the ultimate beneficiary at an affordable cost,
considering the lower cost of funds from banks and
greater reach of the NBFCs. CGTMSE in Feb 2022 launched a Credit Guarantee Scheme for
Co-lending (CGSCL) for extending the guarantee coverage to credit facilities under Co-Lending
Model jointly by Banks and NBFCs.

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