Government benefits · MSME
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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.
Credit Guarantee Fund Trust for Micro and Small Enterprises | SIDBI + MoMSME
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.
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