Assam govt launches Assam Credit Guarantee Scheme with effect from April 1

Assam government on Friday launched the Assam Credit Guarantee Scheme (ACGS) that will securitise lending for medium and small businesses in the State.

“We are pleased to inform you that CGTMSE in collaboration with the State Government of Assam has launched a special guarantee scheme, Assam Credit Guarantee Scheme (ACGS), for the MSEs situated in the State of Assam,” the letter read.

“The scheme is made effective from April 1, 2023. All the existing MLSs shall be eligible under AVGS. Apart from 100 per cent guarantee coverage, all other terms and conditions of the Credit Guarantee Scheme (CGS-I for bands and CGS-II for NBFCs) shall be applicable, mutatis mutandis, under ACGS.

“Under the Scheme, 75-85 per cent of the guarantee coverage or credit facilities will be provided by CGTMSE as hitherto depending upon the category of the borrower and the balance 25-15 per cent coverage shall be provided by the government of Assam, taking the overall guarantee coverage to 100 per cent,” it stated.

It further read claims of the representative MLI will be settled maximum of upto 10 per cent NPA level of the crystallized portfolio (portfolio will be crystallized every FY). In case the NPA level exceeds the above limits, CGTMSE will honor its share that is 75-85 per cent.

This initiative will support meeting the financial need of MSEs in the state of Assam. We look forward to you popularizing ACGS and ensuring that the benefit of the Scheme is properly actualized, the letter stated.