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Guarantee

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Launched 2024
10L+ Beneficiaries

Government of India

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

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Key FeaturesFinancial AidEligibilityDocumentsApply NowFAQs
Government Verified Scheme

CGTMSE provides credit guarantee support to lending institutions for loans extended to micro and small enterprises. This enables collateral-free credit to MSMEs, making it easier for entrepreneurs to access finance without traditional security requirements.

Key Features

Collateral-Free Credit

Provides guarantee cover enabling banks to lend without collateral/third-party guarantees

Coverage up to ₹5 Crore

Credit facilities up to ₹5 crore are eligible for guarantee cover

Both Fund and Non-Fund Based

Covers term loans and/or working capital facilities

Risk Sharing

Trust shares credit risk with lending institutions, encouraging MSME lending

Financial Assistance

ComponentAssistanceDetails
Guarantee CoverageUp to 85% of sanctioned amountFor ₹10 lakh loan, guarantee coverage up to ₹8.5 lakh
Maximum CreditUp to ₹5 croreSuitable for both micro and small enterprises
Service FeeNominal annual service feePaid by lending institution, not borrower
Claim SettlementQuick claim processing for defaultsProtects lending institutions from credit risk

Eligibility Criteria

Who Can Apply

Eligible Candidates

  • 1
    Micro and small enterprises
  • 2
    New and existing enterprises
  • 3
    Manufacturing and service sector units
  • 4
    Credit facility up to ₹5 crore

Who Cannot Apply

Ineligible Candidates

  • Medium and large enterprises
  • Credit facilities above ₹5 crore
  • Enterprises with existing default
  • Activities not covered under MSME definition

Documents Required

MSME/Udyam Registration

Mandatory

Project report/business plan

Mandatory

Identity and address proof

Mandatory

Financial statements

Mandatory

Bank statements

Mandatory

Business registration documents

Mandatory

How to Apply

Bank Branch

  1. 1
    Apply for loan at any lending institution
  2. 2
    Bank evaluates your application
  3. 3
    If eligible, bank applies for CGTMSE guarantee
  4. 4
    CGTMSE approves guarantee cover
  5. 5
    Loan is sanctioned without collateral requirement
  6. 6
    Borrower repays as per loan agreement

Online Portal

Application is made by lending institution, not borrower
Visit www.cgtmse.in for more information

Frequently Asked Questions

No, the service fee is paid by the lending institution. There's no direct cost to the borrower.
Yes, both new and existing micro and small enterprises can benefit from CGTMSE guarantee cover.
100% Government Verified

Ready to Apply?

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