BankCentral Verified 2025-11-09

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

Provides guarantee cover to Member Lending Institutions (MLIs) for collateral-free credit facilities (Term Loans and Working Capital) extended to MSMEs. Up to 75% to 85% of the credit is guaranteed.

Maximum benefit value

₹5 Cr

Eligibility

  • New and existing MSMEs (Micro and Small only)
  • Credit facilities up to ₹5 Crores
  • Credit must be extended by an MLI (bank/NBFC) registered with CGTMSE
  • Collateral-free loan

How to apply

The MLI (bank/NBFC) processes the application and applies for the guarantee cover from CGTMSE on behalf of the MSME.

Required documents

  • Loan application documents (as required by the bank)
  • Udyam Registration proof
  • Consent to participate in the scheme

Official sources

Verification notes

A guarantee fee (0.35% to 1.35% per annum) is payable.