Credit Guarantee Fund Trust for Micro and Small Enterprises · Ministry of MSME & SIDBI
CGTMSE loan assistance in Pune
A credit guarantee that encourages lenders to extend collateral-free credit to eligible micro and small enterprises.
Scheme overview
CGTMSE was set up by the Ministry of MSME and SIDBI to provide a guarantee to member lending institutions for credit extended to micro and small enterprises without collateral security or third-party guarantee.
The guarantee covers term loans and/or working capital facilities sanctioned by eligible banks and financial institutions, up to the ceiling notified by CGTMSE (enhanced to ₹10 crore per eligible borrower with effect from April 2025, as per CGTMSE notifications).
Intended beneficiaries
- New and existing micro and small enterprises in manufacturing and services
- Eligible retail trade activities as notified by CGTMSE
- Enterprises seeking credit without collateral or third-party guarantee
Key features
- No collateral or third-party guarantee for the covered portion of credit
- Guarantee coverage generally ranges from 75% to 90% depending on borrower category and loan size
- Annual guarantee fee as notified, typically borne by the borrower
- Available only through CGTMSE member lending institutions
Current eligibility (summary)
- The enterprise must be a micro or small enterprise as per MSME classification (Udyam registration)
- The credit must be sanctioned by a member lending institution under its normal appraisal
- Activities excluded by CGTMSE (for example, certain agriculture and educational activities) are not covered
General documents
- Udyam registration certificate
- KYC of the enterprise and promoters
- Project report / business plan
- Financial statements and bank statements as required by the lender
Application process
- 1
Approach a CGTMSE member lender with your loan requirement.
- 2
The lender appraises the proposal under its normal credit norms.
- 3
If sanctioned, the lender applies for guarantee cover on the CGTMSE portal.
- 4
The guarantee fee is paid and the guarantee is issued to the lender.
Frequently asked questions
Do I apply to CGTMSE directly?
No. The borrower applies to a member lending institution. The lender seeks the guarantee cover from CGTMSE.
Is a CGTMSE-covered loan free?
No. The loan carries interest set by the lender, and an annual guarantee fee applies as notified by CGTMSE.
Government schemes change from time to time. Always confirm the latest guidelines on the official portal before applying. Applications are processed and sanctioned only by the implementing agency and the lender.
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