National Credit Guarantee Trustee Company Ltd (NCGTC) is a private limited company incorporated under the Companies Act 1956 on March 28, 2014, established by the Department of Financial Services, Ministry of Finance. It is a wholly owned company of the Government of India to act as a common trustee company for multiple credit guarantee funds. It was established with a paid-up capital of ₹10 crore, with its registered office at Mumbai. The Tagline of NCGTC is Saath Udaan Bharein
Credit guarantee programmes are designed to share the lending risk of the lenders and in turn, facilitate access to finance for the prospective borrowers. The intent of NCGTC is therefore, to manage multiple guarantee schemes as part of a larger financial inclusion programme of the government covering different cross-sections and segments of the economy like students, micro entrepreneurs, women entrepreneurs, SMEs, skill and vocational training needs, etc.
There are five dedicated credit guarantee Trusts under the Management of NCGTC
Cumulatively, these five Trusts have a committed credit guarantee corpus of Rs 13,000 crore.
The chairman of NCGTC is MOHAMMAD MUSTAFA, IAS Chairman & Managing Director, SIDBI
The GECL is a loan for which 100% guarantee would be provided by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs), and which will be extended in the form of additional working capital term loan facility in case of Scheduled Commercial Banks (SCBs) and Financial Institutions (FIs), and additional term loan facility in case of Non-Banking Financial Companies (NBFCs), to eligible MSMEs/ Business Enterprises and interested Pradhan Mantri Mudra Yojana (PMMY) borrowers
Download this article as PDF
Click to go to RBI Grade B Preparation Page
Tags: Functions of NCGTC
May – 2020 Edition
April – 2020 Edition
March – 2020 Edition
February – 2020 Edition
January – 2020 Edition
December – 2019 Edition
Punjab Civil Services 2020