Govt extends Credit Guarantee Scheme for Subordinate Debt for 6 months
The Union Government of India has announced extension of Credit Guarantee Scheme for Subordinate Debt (CGSSD) till March 31, 2022..
The Government announced creation of 'Distressed Assets Fund - Subordinate Debt for Stressed MSMEs" on May 13, 2020, under the Aatmanirbhar Bharat Package. Accordingly, a scheme named 'Credit Guarantee Scheme for Subordinate Debt" was approved on June 1, 2020. The scheme was launched on June 24, 2020 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 on the books of the Lending institutions.
This scheme was to remain in operation till March 31, 2021. In order to keep the avenues of assistance to stressed MSME units open, the Government had earlier decided to extend this scheme for six months from March 31, 2021 to September 30, 2021.
On the basis of the requests from the stakeholders of the scheme, the Government has decided to further extend it by a period of another six months beyond September 2021. Hence, the scheme will now remain operational till the end of March 2022.