CGTMSE Loan
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) facilitates collateral-free credit for eligible Micro and Small Enterprises by providing credit guarantee coverage to Member Lending Institutions. Eligible businesses can obtain term loans and/or working capital facilities without collateral security and third-party guarantees, subject to the lender's credit assessment and CGTMSE scheme guidelines. Under the current scheme, eligible credit facilities can be covered up to ₹10 crore for qualifying borrowers through eligible banks and financial institutions. The applicable guarantee coverage varies based on the loan amount and borrower category. CGTMSE does not directly provide the loan to the borrower. The loan is sanctioned and disbursed by a participating Member Lending Institution, while CGTMSE provides the applicable credit guarantee coverage.
Quick Inquiry
Get a callback within 30 minutes
Why Choose This Loan
CGTMSE-backed credit facility
Collateral-free financing for eligible borrowers
No third-party guarantee requirement, subject to scheme conditions
Term Loan and Working Capital facilities
Credit facilities up to ₹10 crore can be covered under the current scheme through applicable eligible institutions
Applicable to eligible Micro and Small Enterprises
Available through CGTMSE Member Lending Institutions
Eligibility Criteria
| Parameter | Requirement |
|---|---|
| Applicant must be an eligible Micro or Small Enterprise | |
| Business must satisfy applicable MSME classification requirements | |
| Enterprise should have valid business and KYC documentation | |
| Applicant should meet the lending institution's credit assessment criteria | |
| Business should demonstrate adequate repayment capacity | |
| Applicant should have satisfactory banking and credit history | |
| Credit facility must be sanctioned by an eligible Member Lending Institution | |
| Loan must satisfy applicable CGTMSE scheme conditions | |
| Final sanction is subject to lender's credit assessment and approval |
Required Documents
Frequently Asked Questions
CGTMSE stands for Credit Guarantee Fund Trust for Micro and Small Enterprises. It provides credit guarantee support to eligible lending institutions for qualifying credit facilities extended to Micro and Small Enterprises.
No. CGTMSE does not directly lend money to businesses. The loan is sanctioned by a participating Member Lending Institution, while CGTMSE provides guarantee coverage subject to its scheme conditions.
Eligible credit facilities can be covered without collateral security and third-party guarantees, subject to CGTMSE guidelines and the lender's credit assessment.
Under the current scheme, eligible credit facilities can be covered up to ₹10 crore through applicable eligible Member Lending Institutions.
Eligible Micro and Small Enterprises that meet CGTMSE requirements and the lending institution's credit criteria can apply.
Coverage depends on the loan amount and borrower category. For example, under the current scheme, coverage can range from 75% to 90% for specified categories and loan amounts.
Yes. Under the current scheme, women entrepreneurs can receive enhanced guarantee coverage, with coverage up to 90% in specified cases.
Yes. Eligible working capital facilities can be covered under the CGTMSE scheme, subject to applicable conditions.
Typically, lenders require KYC documents, Udyam registration, business documents, GST records, income-tax returns, financial statements and bank statements.
CGTMSE itself does not prescribe a single borrower interest rate. The interest rate is determined by the lending institution based on its applicable policies and the borrower's credit profile.
Ready to Get Started?
Apply now and get the best deal with minimal documentation.