- Collateral-free loans for MSE up to 5 Cr.
- Reduced CGTMSE fee starting at 0.37%.
- CGTMSE Hybrid Scheme – Higher Loan Limit.
- Loans available for Manufacturers, Service Providers, and Traders.
- New Addition – Education and Training Institutes.
- Expert Help from Experienced Loan Agency.
CGTMSE Scheme – Start To Be Great
Banks / NBFCs offer collateral-free loans to Micro and Small Enterprises (MSEs) with the backing of CGTMSE’s credit guarantee. Lending institutions collect an annual fee as a risk premium to cover loans that may become NPA.
- Coverage Limit: 500 lakhs.
- Beneficiaries: New and existing SMEs in manufacturing, Service Sector, Trading, and Educational/Training Institutions.
- Lending Institutions: Over 100 Banks and NBFCs empanelled by CGTMSE.
- CGTMSE Hybrid Scheme: Higher loan coverage with partial security; asset secures part of the loan, and CGTMSE covers the rest.
- CGTMSE Fees: Yearly fees range from 0.37% to 2% on the reducing balance.
All lending institutions do a meticulous evaluation of loan serviceability while processing loans.
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The full form of CGTMSE is "Credit Guarantee Fund Trust for Micro and Small Enterprises."
CGTMSE is a joint initiative established by the Ministry of Micro, Small & Medium Enterprises (MSME), Government of India, and the Small Industries Development Bank of India (SIDBI) to facilitate finance for MSEs.
CGTMSE provides guarantee cover to lending institutions for collateral-free loans offered to MSEs. This encourages financial institutions to finance viable micro and small enterprises.
- Sole Proprietorship firms
- Partnership firms
- Private Limited Companies
- Public Limited Companies
New and existing MSMs engaged in manufacturing, service sector, trading, educational institutes, and training institutes.
More than 100 financial institutions are member lending institutions of CGTMSE, including Private Banks, NBFCs, PSUs, RRBs, SUCBs, FLs, SFBs, and Foreign Banks.
The CGTMSE loan limit is determined based on the applicant's profile, reayment capacity and business needs.
Yes, a borrower can take loans from more than one bank/NBFC. However, the credit guarantee coverage limit is a maximum of 500 Lakh across all loans.
No. While CGTMSE covers only a percentage of the outstanding loan amount (between 50 to 85%), financial institutions still have exposure to the remaining loans.
Moreover, the reputation and asset quality of financial institutions are closely tied to NPAs. So, they underwrite loans carefully to ensure loan serviceability.
Yes, loans backed by CGTMSE are subject to an annual fee ranging from 0.37% to 2%, depending on the loan amount and business activity.
The fee is charged annually as per sanction letter, based on the outstanding amount as of December 31st.
Yes, a 10% discount is offered for SC, ST, Women, ZED Certified Units, Units in Aspirational Districts, and physically disabled.
Under Hybrid Security product, loans sanctioned to MSE units with partial collateral coverage can be covered under the credit guarantee scheme of CGTMSE.
In other words, a portion of the loan that is not covered by collateral security (maximum 5Crs.) sanctioned to MSE units can be covered under CGTMSE.
The loan tenure under the CGTMSE Loan is 5 years. Under hybrid scheme, it can be up to 10 years.
Loan disbursement takes 4 to 7 days working days, subject to document availability.
Required documents depend on the borrower's profile, business activity, and loan purpose. Share your name for a personalized checklist.
Yes, they are eligible.
Self-Help Groups (SHGs) and agriculture-related activities are not eligible.
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