MCQ
Credit Guarantee Scheme for Exporters (CGSE) MCQ - Practice Questions with Answers
Solve 5 Credit Guarantee Scheme for Exporters (CGSE) questions for RAS/RPSC preparation.
Practice questions
Q1What is the maximum CGSE loan amount permitted per borrower across all Member Lending Institutions?
CGSE permits a maximum loan of ₹50 crore per borrower, calculated across all Member Lending Institutions rather than separately for each lender. The facility is available only in rupee currency, and eligible additional credit is also constrained by the 20% working-capital-limit rule.
Q2Consider the following statements about invocation and settlement of a CGSE guarantee: 1. The lock-in period for invoking the guarantee is 6 months from commencement of the guarantee cover. 2. If an eligible claim is in order, 75% is paid within 30 days and the balance 25% follows recovery proceedings, settlement, or the legal case becoming time-barred. 3. A one-time settlement leaves the guarantee cover unchanged at 100% of the amount in default. How many of the statements given above are correct?
Exactly two statements are correct. The lock-in lasts 6 months, and an eligible claim in order is paid 75% within 30 days with the remaining 25% payable after the specified recovery, settlement, or limitation event. Statement 3 is false: a one-time settlement reduces cover to 90% of the amount in default.
Q3Which one of the following statements about CGSE loan terms is incorrect?
Option B is incorrect because CGSE expressly prohibits a lender from seeking additional collateral for the extra funding or obtaining a fresh personal or corporate guarantee. By contrast, the 4-year tenor with a 1-year moratorium, the 10% cap for banks and financial institutions, and the absence of a processing fee are all prescribed terms.
Q4Which institution implements the Credit Guarantee Scheme for Exporters (CGSE) on behalf of the Department of Financial Services?
The Department of Financial Services in the Ministry of Finance implements CGSE through the National Credit Guarantee Trustee Company. That company also manages the dedicated Credit Guarantee Fund for Exporters, which backs the scheme's guarantee cover.
Q5Consider the following statements about exporter eligibility under CGSE: 1. A direct-exporting MSME must derive at least 5% of its turnover from exports in specified tariff-impacted sectors. 2. An indirect-exporting MSME must supply at least 30% of its total turnover to eligible direct exporters. Which of the statements given above is/are correct?
Both statements are correct. A direct-exporting MSME needs at least 5% export turnover in the specified tariff-impacted sectors, while an indirect-exporting MSME must supply at least 30% of total turnover to eligible direct exporters. Either turnover test may be satisfied in financial year 2023-24 or 2024-25.
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