New Delhi, June 25 -- Union Minister of Micro, Small and Medium Enterprises (MSME) Nitin Gadkari has launched the Credit Guarantee Scheme for Sub-ordinate Debt (CGSSD) which is also called Distressed Assets Fund Sub-ordinate Debt for MSMEs.
As per the Scheme, subordinate debt scheme to provide Rs 20,000 crore guarantee cover to two lakh MSMEs who can take debt from the banks to further invest in their stressed MSMEs as equity.
''It was felt that the biggest challenge for stressed MSMEs was in getting capital either in the form of debt or equity. Therefore, as part of Atmanirbhar Bharat package, on May 13th, 2020, the Finance Minister had announced this scheme of subordinate Debt to the promoters of operational but stressed MSMEs,'' said...