VCFO Lite
CGTMSE collateral-free guarantee cover for MSE loans
What this means, checked by a CA
CGTMSE is a government trust that guarantees your bank against default, so the bank can lend to a micro or small business without collateral up to ₹10 crore. We prepare the loan file, ask the bank to sanction under CGTMSE, and check that the guarantee fee and terms in the sanction letter are right.
₹4,999
One time, with annual fee renewal by the lender, + 18% GST
- Delivered in 7 working days to prepare the loan file; guarantee is taken by the bank after sanction
- Due: Ask for CGTMSE cover at the loan application stage, before sanction and before any collateral is offered
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 8 items
Udyam Registration Certificate
Mandatory for CGTMSE eligibility
KYC of unit and promoters
Bank and MLI checks
Project report with projections
Viability decides sanction
Last 2 to 3 years ITR and financialsOptional
Existing units: track record
Business premises rent or ownership proof
Address of the unit
Existing loans and guarantees list
Aggregate cap ₹10 crore; prior invoked guarantees bar
ZED certificate, if anyOptional
Fee concession
Women, SC/ST or district status proofOptional
Higher cover or fee discount
DiscussionWhat we discuss · 6 items
Is the unit micro or small under the 2025 limits, and is Udyam done?
Medium units are not covered
How much do you need in total across all lenders?
Aggregate CGTMSE cover capped at ₹10 crore
Has the bank already taken property or a third-party guarantee?
Only the unsecured part can be covered
Is the unit in an aspirational or credit deficient district, women-led or ZED certified?
Extra cover or fee concession
Any earlier CGTMSE or NCGTC guarantee invoked and unpaid?
Makes the borrower ineligible
Will you bear the guarantee fee or will the bank?
Changes the true cost of the loan
FormsForms we file · 7 items
Check MSE status, Udyam, eligible activity and exclusions
Micro: investment up to ₹2.5 crore, turnover up to ₹10 crore; Small: up to ₹25 crore and ₹100 crore
Where: https://udyamregistration.gov.in. Due: Before applying
Prepare the loan file: project report, CMA data, DSCR and cash flow (see LON-BUS-01)
Where: Internal. Due: Before applying
Apply to a CGTMSE member bank or NBFC and request sanction under CGTMSE (or Hybrid Security for the unsecured part)
Where: Lender branch or https://www.jansamarth.in. Due: At application
Compute guarantee fee and total cost
Year 1 AGF = guaranteed amount x slab rate + GST; later years on outstanding amount
Where: Internal. Due: Before accepting sanction
Review sanction letter: no collateral beyond scheme, fee payer, tenure
Where: Internal. Due: Before signing
Lender files the guarantee application and pays the first fee; cover starts when fee reaches the Trust
Where: https://www.cgtmse.in. Due: After sanction, before or at disbursement
Track annual fee renewal each year
Where: Lender. Due: Yearly, by 31 March
DeliverablesWhat you get · 3 items
Sanction letter marked CGTMSE covered
When: Bank sanction timeline
Guarantee cover issued to the bank (CGPAN)
When: After first fee is paid
Fee and cost note for the client
When: With sanction
Questions people ask
What is the maximum loan covered?
₹10 crore per borrower from 1 April 2025, up from ₹5 crore.
Who pays the guarantee fee?
The lender pays the Trust. Banks often recover it from the borrower; SBI recovers it from the loan account on Stand-Up India loans.
Are retail and wholesale traders covered?
Yes. Trading activity, including wholesale trade, is eligible.
Can part of my loan be against property and part under CGTMSE?
Yes, under Hybrid Security the unsecured part can be covered up to ₹10 crore.
If I default, is my debt waived?
No. The Trust pays the bank, but the bank must still recover from you and pass recoveries back to CGTMSE.
How long does the cover last for a cash credit limit?
Five years for working capital only, renewable on payment of fee.
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