Government extends Credit Guarantee Scheme for Subordinate Debt upto March 31, 2022

Union Government has extended the Credit Guarantee Scheme for Subordinate Debt up to March 31, 2022.

Ministry of Micro, Small and Medium Enterprises said, the government had announced the creation of Distressed Assets Fund - Subordinate Debt for Stressed MSMEs' on May 13, 2020, under the Atma Nirbhar Bharat Package. Accordingly, a scheme viz. 'Credit Guarantee Scheme for Subordinate Debt' was approved by the Government on June 1, 2020, and the scheme was launched on June 24, 2020. The scheme was launched to provide credit facilities through lending institutions to the promoters of stressed Micro, Small and Medium Enterprises MSMEs viz. SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the books of the Lending institutions.

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.

The Ministry said, based on the requests received from the stakeholders of the scheme, the Government has decided to further extend it by a period of another six months.

The scheme will now remain operational till March 31, 2022.