Guwahati (Assam) [India], June 10 (ANI): Assam government on Friday launched the Assam Credit Guarantee Scheme (ACGS) that will securitise lending for medium and small businesses in the State.

"We are pleased to inform you that CGTMSE in collaboration with the State Government of Assam has launched a special guarantee scheme, Assam Credit Guarantee Scheme (ACGS), for the MSEs situated in the State of Assam," the letter read.

Also Read | Madhya Pradesh: Two Women Die Due to Mudslide Near Pond in Bhopal (See Pics).

"The scheme is made effective from April 1, 2023. All the existing MLSs shall be eligible under AVGS. Apart from 100 per cent guarantee coverage, all other terms and conditions of the Credit Guarantee Scheme (CGS-I for bands and CGS-II for NBFCs) shall be applicable, mutatis mutandis, under ACGS.

"Under the Scheme, 75-85 per cent of the guarantee coverage or credit facilities will be provided by CGTMSE as hitherto depending upon the category of the borrower and the balance 25-15 per cent coverage shall be provided by the government of Assam, taking the overall guarantee coverage to 100 per cent," it stated. It further read claims of the representative MLI will be settled maximum of upto 10 per cent NPA level of the crystallized portfolio (portfolio will be crystallized every FY). In case the NPA level exceeds the above limits, CGTMSE will honor its share that is 75-85 per cent.

Also Read | Uttar Pradesh: Varanasi To Host G20 Development Ministers' Meeting From June 11, EAM Jaishankar To Chair.

This initiative will support meeting the financial need of MSEs in the state of Assam. We look forward to you popularizing ACGS and ensuring that the benefit of the Scheme is properly actualized, the letter stated. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)