What Is CGTMSE?

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is a government-backed scheme in India that provides credit guarantees to banks and financial institutions for loans extended to Micro and Small Enterprises (MSEs). It enables MSEs to obtain loans without the need for collateral or third-party guarantees, thereby promoting entrepreneurship and business growth.

Key Facts About CGTMSE

Collateral-Free Loans: CGTMSE allows MSEs to access loans without offering any collateral, reducing barriers to obtaining financing.

Government Guarantee: The scheme provides a guarantee of up to 85% of the loan amount to the lender, minimizing their risk.

Wide Coverage: It covers various sectors, including manufacturing and services, for both new and existing enterprises.

CGTMSE Eligibility Criteria

Micro and Small Enterprises: Only MSEs, as defined by the government, are eligible for CGTMSE coverage.

Loan Amount: The scheme typically covers loans up to ?2 crores.