CGTSME Fee Refund Scheme

Haryana's Collateral Free Credit Guarantee Scheme: Strengthening Micro Enterprises

Introduction :

The Government of Haryana has introduced the Collateral Free Credit Guarantee Scheme, reinforcing its commitment to supporting the growth of Micro Enterprises in the state. This initiative is aimed at making credit more accessible to Micro Enterprises by offering a reimbursement of the guarantee cover fee charged by financial institutions for collateral-free term loans or working capital under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Objectives and Quantum of Assistance :

The primary objective of this scheme is to enhance the availability of credit without the need for collateral/third-party guarantees, thereby encouraging the growth and expansion of Micro Enterprises within Haryana. The scheme offers a 100% reimbursement of the guarantee cover fee for a period of 5 years, facilitating easier access to necessary financial resources for eligible enterprises.

Eligibility Criteria :

To be eligible for this scheme, enterprises must comply with specific conditions, including having an investment in Plant and Machinery that does not exceed INR 5 crore, as well as meeting turnover requirements as amended by the Government of India. Additionally, the credit facility should be availed from institutions covered under the scheme, including scheduled commercial banks and certain Regional Rural Banks. Units must be in commercial production and not listed in the restrictive list notified by the State government.

Application and Documentation:

Enterprises seeking to avail of this assistance must submit their applications through the designated web portal, along with necessary documents such as the Udyam Registration Certificate, Haryana Udhyam Memorandum, and other relevant documents as specified in Annexures I and II of the scheme's documentation. The process involves submission to the Director/Director General, Micro, Small, and Medium Enterprises, Haryana, followed by examination and processing by the Joint Director/Deputy Director of the District MSME Center.

Procedure for Disbursement and Appeals :

The scheme outlines a clear procedure for the disbursement of the reimbursement, with applications to be submitted within three months from the start of operation or the date of notification of the scheme, whichever is later. In case of any disputes or rejections, enterprises have the right to appeal against the decisions of the Competent Authority within specified time limits.

Penalties and Recourse :

Stringent penalties are in place for any false claims, including the repayment of assistance with compound interest and legal action. Enterprises found guilty of submitting incorrect information will also be barred from receiving any future incentives/assistance from the State Government and from public procurement.

Conclusion :

The Collateral Free Credit Guarantee Scheme by the Haryana Government is a significant step towards empowering Micro Enterprises in the state by facilitating easier access to credit facilities. Through this scheme, the state aims to foster an environment that supports industrial growth, innovation, and sustainability, ultimately contributing to the broader economic development of Haryana.

Rapid Consulting's Role in Facilitating the Process :

Rapid Consulting offers specialized services to navigate the complexities of the CGTMSE Fee Scheme, ensuring seamless processing and maximization of benefits for enterprises. They guide businesses through eligibility checks, application preparation, and submission, helping to streamline the process of obtaining reimbursement for the guarantee cover fee.

Impact of the Scheme on Haryana's Industrial Growth :

The CGTMSE Fee Scheme has made a significant impact on Haryana's industrial growth by facilitating easier access to credit for Micro Enterprises without the need for collateral. This has encouraged more enterprises to seek financial assistance, leading to increased investment and business expansion within the state, thus fostering industrial growth.

Future Prospects and Enhancements :

The future of the CGTMSE Fee Scheme looks promising with potential for further refinements to increase its accessibility and effectiveness. Enhancements could include expanding the eligibility criteria to include more business sectors, increasing the subsidy limits, and simplifying the application process to accommodate a broader range of enterprises.

FAQs?

What is the CGTMSE Fee Scheme in Haryana?

The CGTMSE Fee Scheme provides a reimbursement of 100% of the guarantee cover fee charged by financial institutions for collateral-free loans taken by Micro Enterprises, for a period of five years.

Who is eligible for the CGTMSE Fee Scheme?

Micro Enterprises in Haryana with an investment in plant and machinery not exceeding INR 5 crore and which meet specific operational criteria set by the government.

How much can be refunded under this scheme? 

The scheme covers 100% of the guarantee fee for a term of five years without any explicit monetary cap stated, implying that the reimbursement could potentially cover substantial amounts depending on the fee charged by the financial institutions.

What is the process for applying for the CGTMSE Fee Scheme?

Applications must be submitted on prescribed forms along with necessary documents to the Director/Director General of MSMEs through the Haryana government’s web portal. There is a clear protocol for addressing any deficiencies in applications, with specific timelines for resolution and final submission.

What happens if an enterprise provides false information to claim the refund?

Providing false information can result in severe penalties including the repayment of the reimbursed amount with a compound interest rate of 12% per annum, legal action, and exclusion from future incentives or assistance from the state government.

How does Rapid Consulting assist in this process?

Rapid Consulting facilitates the entire process, from application to sanction, ensuring enterprises fully benefit from the scheme with minimal hassle.

Target Sectors in Haryana :

The "Collateral Free Credit Guarantee Scheme" is designed to support micro enterprises across Haryana by facilitating access to credit without the need for collateral. This initiative aims to encourage the growth of small-scale industries and enhance their contribution to the regional economy.

Eligibility for Existing Businesses and New Ventures :

To qualify, enterprises must be operational, not listed on the state's restrictive lists, and must have completed all required registrations. The Unit can be new as well as existing venture. The facility aims to benefit enterprises that have already received assistance from state-level institutions or member banks but require further support without additional collateral.

Integration with Other Subsidies and Incentives :

While the scheme primarily provides a guarantee cover for loans, it is part of the broader Haryana Enterprises & Employment Policy 2020, which includes various incentives to support enterprise development across the state.

Application Process :

Applications are to be submitted online via the department's web portal, using prescribed forms accompanied by necessary documents. The process involves scrutiny by district MSME officials and allows for a rectification period for any deficiencies noted during the initial review.

Geographical Preferences in Haryana :

The scheme is available to micro enterprises throughout Haryana, ensuring that small businesses across various regions can benefit from enhanced access to finance, thus fostering amore inclusive economic development model.

Why Choose Rapid Consulting?

Specialized Expertise:

Our team at Rapid Consulting boasts in-depth knowledge of subsidy schemes, ensuring you get the most out of your investment.

End-to-End Assistance :

From initial assessment to final application, we manage the entire process, making it seamless and hassle-free for your business.

Maximized Benefits:

We ensure that you fully leverage the financial incentives available, boosting your company's growth and profitability.

Our services encompass:

Consultation and Eligibility Assessment:

We conduct detailed consultations to understand the clients' manufacturing operations and determine their eligibility for the CGTSME fee reimbursement scheme. This involves assessing their micro-manufacturing status and alignment with the scheme's guidelines.

Documentation Preparation:

Our expert team assists in preparing all necessary documentation required for the reimbursement application. This includes compiling CGTSME fee payment records, company registration details, and other relevant information as per the scheme's requirements.

Application Management:

We manage the entire application process, ensuring all documents are submitted accurately and on time. Our professionals liaise with the relevant government departments and agencies to streamline the submission process and address any queries that may arise.

Negotiation and Follow-up:

We handle negotiations and follow-ups with the authorities on behalf of our clients, ensuring prompt responses to any queries or requests for additional information.

Our aim is to facilitate a smooth application review process and maximize the chances of reimbursement approval.

Subsidy Disbursement:

Upon approval, we assist in facilitating the disbursement of the reimbursement amount to our clients. We ensure that all procedural formalities are completed efficiently to enable timely receipt of the subsidy funds.

Rapid Consulting's expertise and experience in navigating subsidy schemes enable us to effectively support micro manufacturing industries in Haryana in accessing reimbursement for CGTSME fees, thereby reducing financial burden and fostering growth in the sector.

How to Reach Us:

Website:

Visit our official website for detailed information, service offerings, and to schedule an online consultation.

Direct Contact :

Call us at +91-9467248028/9416506136or email info@rapidconsulting.in to discuss your needs directly with our experts.

Office Visit :

Our offices are open for in-person consultations at 134, Rapid Consulting, First floor Below Paysam Restaurant, Near Samsung Care. Lajpat Nagar, Rajgarh Road Hisar,Haryana-125001.

Here, you can meet with our consultants who can provide personalized guidance tailored to your business's specific circumstances. Engage with Rapid Consulting today to leverage their expertise in enhancing your business's financial and operational performance through the Collateral Free Credit Guarantee Scheme and other beneficial state initiatives. Whether online, over the phone, or in person, Rapid Consulting is ready to assist you in advancing your business goals in Haryana.

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