Answer

1. F

   Facts

   CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises) guarantees loans to MSMEs from banks without the business owner providing collateral or third-party guarantee. The guarantee is given to the bank, you approach the bank for the loan, they apply to CGTMSE for the guarantee.

2. P

   Provisions and law

   • Credit Guarantee Fund Trust for Micro and Small Enterprises | SIDBI + MoMSME
3. A

   Analysis

   Coverage: Up to 75-85% of the loan amount (higher for women-owned, NE states, micro enterprises). Max loan: ₹5Cr. Tenure: Up to 10 years for term loans. Annual guarantee fee: 0.37-1.35% per year (charged to the borrower by the bank), this is how CGTMSE is funded. Fee is higher for larger loans and lower risk categories. How to access: Approach any bank for an MSME loan. Tell them you want it under CGTMSE. Banks that are CGTMSE member lenders will apply for the guarantee on your behalf.

4. C

   Conclusion

   Talk to a Savvy for the exact next step on your case.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.