CGTMSE- Credit Guarantee fund Trust For Micro and Small Enterprises

CGTMSE guarantees collateral free/third party guarantee free credit facilities upto Rs.100 lacs sanctioned by its Member Lending Institutions (MLIs) to eligible Micro and small Enterprises.

Objective
Availability of bank credit without the hassles of collaterals / third party guarantees would be a major source of support to the first generation entrepreneurs to realise their dream of setting up a unit of their own Micro and Small Enterprise (MSE). Keeping this objective in view, Ministry of Micro, Small & Medium Enterprises (MSME), Government of India launched Credit Guarantee Scheme (CGS) so as to strengthen credit delivery system and facilitate flow of credit to the MSE sector. To operationalise the scheme, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

The main objective is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed.  The other objective is that the lender availing guarantee facility should endeavor to give composite credit to the borrowers so that the borrowers obtain both term loan and working capital facilities from a single agency. 

Limit of Credit Guarantee

CGTMSE provides collateral / third party guarantee free credit facility (both fund as well as non fund based) extended by eligible institutions, to new as well as existing Micro and Small Enterprise, including Service Enterprises, with a maximum credit cap of Rs.100 lakh (Rupees Hundred lakh only) are eligible to be covered.

The guarantee cover available under the scheme is to the extent of 75% / 80% of the sanctioned amount of the credit facility, with a maximum guarantee cap of Rs.62.50 lakh / Rs. 65 lakh. The extent of guarantee cover is 85% for micro enterprises for credit up to Rs.5 lakh.

 The extent of guarantee cover is 80%(i) Micro and Small Enterprises operated and/or owned by women; and (ii) all credits/loans in the North East Region (NER). In case of default, Trust settles the claim up to 75% (or 80%) of the amount in default of the credit facility extended by the lending institution.

 The lender should cover the eligible credit facilities as soon as they are sanctioned.  In any case, the lender should apply for guarantee cover in respect of eligible credits sanctioned in one calendar quarter latest by end of subsequent calendar quarter.  Guarantee will commence from the date of payment of guarantee fee and shall run through the agreed tenure of the term credit in case of term loans / composite loans and for a period of 5 years where working capital facilities alone are extended to borrowers, or for such period as may be specified by the Guarantee Trust in this behalf.

For more details for the operating procedure please reffer CGTMSE

Read More

LIC Online Purchase Option - JEEVAN AKSHAY VI, Its Pension Policy

Pension Plans

Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.

You ‘ve waited long enough to enjoy this moment – LIChas introduced new pension policy JEEVAN AKSHAY – VI. This policy is now available online at www.licindia.in. Now we shall be discussing its features and benefites :-

Features

Introduction:

It is an Immediate Annuity plan, which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant. Various options are available for the type and mode of payment of annuities.

Options Available:

The following options are available under the plan

1.     Type of Annuity:

1.     Annuity payable for life at a uniform rate.

2.     Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.

3.     Annuity for life with return of purchase price on death of the annuitant.

4.     Annuity payable for life increasing at a simple rate of 3% p.a.

5.     Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.

6.     Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.

7.     Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of last survivor.

2.     You may choose any one. Once chosen, the option cannot be altered.

Mode:

• Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. You may opt any mode of payment of Annuity..

Annuity Rate

Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under different options is as under:

Age last birthday	Yearly annuity amount under option
	( i )	( ii ) (15 years certain)	( iii )	( iv )	( v )	( vi )	(vii)
30	7190	7160	6890	5250	7080	6970	6860
40	7510	7440	6930	5610	7310	7120	6890
50	8140	7950	7000	6280	7760	7420	6930
60	9350	8790	7110	7530	8640	8030	7010
70	12080	9830	7260	10220	10560	9370	7130
80	17880	10440	7480	15890	14600	12340	7290

Incentives for high purchase price

If your purchase price is Rs. 2.50 lakh or more, you will receive higher amount of annuity due to available incentives. In addition of this, for policies sold online, a rebate of 1% by way of increase in the annuity rate shall also be available.

Benefits:

The amount of annuity is assured throughout life of the annuitant.

What happens if the annuitant dies?

If the annuitant dies :

1.     Under option (i) annuity ceases.

2.     Under option (ii)

3.     On death during the guaranteed period - annuity is paid to the nominee till the end  of the guaranteed period after which the same ceases.

4.     On death after the guaranteed period - annuity ceases.

5.     Under option (iii) annuity ceases and the purchase price is paid to the nominee.

6.     Under option (iv) annuity ceases.

7.     Under option (v) annuity ceases and 50% of the annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.

8.     Under option (vi) annuity ceases and full annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.

9.       Under option (vii) annuity ceases. Full annuity is payable to the surviving named spouse during his/ her life time and purchase price is paid to the nominee after the death of the spouse. If the spouse predeceases the annuitant, the annuity ceases and purchase price will be paid to the nominee.

When first instalment of annuity payable:

First instalment of annuity is payable after one month, three months, six months or one year from the date of purchase of annuity depending on the mode chosen is monthly, quarterly, half yearly or yearly respectively.

Read More

Additional services covered under Reverse Charge Mechanism w.e.f 07.08.2012

Now, w. e. f. 07.08.2012, following additional services shall be covered by reverse charge mechanism:

Sl. No.	Nature or Description of service	% of Service Tax payable by service provider	% of Service Tax payable by service Recipient
1.	Security Services provided by Individual, HUF, partnership firm or AOP to body corporate business entity [Security services" means services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity- Rule 2(fa) of Service Tax Rules, 1994]	25%	75%
2.	Services  by a director of a company to the said company	Nil	100%

New Servive under Reverse charge W.E.F 01.07.12

Read More