Regarding cgtmse loan scheme for recovery
Querist :
Anonymous
(Querist) 22 March 2016
This query is : Resolved
Dear Sir, I want to inquire as to what proceedings could be undertaken by Public Banks in case the whole amount of loan is covered under CGTMSE (Credit Gurantee Trust for Medium and Small Enterprises). The borrower is in the medical equipment manufacturing industry due to unavoidable circumstances the company had to be closed. The loan was granted under msme.Now the bank has moved DRT and is asking the directors for there personal assets details.Please Reply at the earliest..!!! Aanshumaan
Rajendra K Goyal
(Expert) 22 March 2016
Though the query is anonymous, not to be answered, but name mentioned in the last hence replied.
CGTSME covered loan does not mean Bank would not proceed to recover the loan, it would proceed normally to recover its dues.
CGTSME cover compensate the Bank to 60% to 75% or as per scheme, in case the loan is defaulted. Any recovery need to be shared with CGTSME in the same % by the Bank.
Bank can proceed to recover from directors in case of default of CGSME loan also.
