Quick Summary
CGTMSE provides credit guarantee cover to banks and financial institutions for collateral-free loans up to ₹5 crore to micro and small enterprises.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a trust set up by Ministry of MSME and SIDBI to provide collateral-free credit to MSME sector.
Key Features
- Collateral-free loans up to ₹5 crore
- Guarantee cover: 75-85% of loan amount
- North East Region: 80-90% cover
- Includes both term loans and working capital
- Women entrepreneurs get additional benefits
Eligibility
- New and existing micro and small enterprises
- Engaged in manufacturing or services
- Retail trade excluded (except in NER)
- Self-help groups (SHGs) eligible
How to Avail
- Apply for loan at any scheduled bank
- Bank applies for guarantee on CGTMSE portal
- Pay guarantee fee (0.37% to 1.35% p.a.)
- Guarantee cover activated within 30 days
Key Points
- Collateral-free loans up to ₹5 crore
- 75-85% guarantee cover
- Available through all scheduled banks
- Annual guarantee fee applies
- For micro and small enterprises
- Special benefits for women entrepreneurs