CGTMSE Scheme|MSME Loan up to 2 Cr. without Property | Startup LoanAnkit Rastogi
10 Major Points to Explain CGTMSE
Q1. What is CGTMSE?
Credit Guarantee Trust for Micro & Small Enterprises has started to support Micro and small business for financial borrowing from Banks. This segment faces a tremendous hurdle to grow and survive gracefully. They use to have limited fund borrowing options due to scarcity of collateral, Thus CGTMSE has come with a guarantee.
Q2. BY Whom?
CGTMSE has started by Central Government and SIDBI.
Q3. For Whom?
Micro & Small Enterprises
Q4. What are Funding Factors?
There are important funding factors that every MSME should know about these points.
- Loan facility up to 2 Cr.
- CGTMSE provide 75% guarantee
- Bank Burden 15%
- Micro & Small Enterprise give 10% contribution
- To start a potential business with viable project reports and projections.
- To support growing Mfg/service/retail segment
Q.5 Who can’t apply for CGTMSE?
- If any DICGC /Mudra Loan/ PMEGP or any other educational Loan and any other Guarantee cover loan availed.
- If you have a working capital limit from any Banks and NBFCs on your stock and book debts
Q6. Who are Micro and Small Enterprises?
Recently the government of India has changed the criteria for MSMEs to increase the number of beneficiaries.
|Manufacture & Service||Upto 1 Cr.||Upto 5 Cr|
|Manufacture & Service||Upto 10 Cr.||Upto 50 Cr|
Q7. What is hybrid security option?
After CGTMSE Guarantee (75%) and Customer contribution (10%), Bank may ask security for their burden part (15%) as Hybrid Security (Collateral) to satisfy and fulfill the gap of a risk factor to fund.
Q.8 What is fee to CGTMSE ?
For Manufacture and Service Enterprises
- Upto 50 Lakhs – 1.50 % + Risk Premium
- Upto 200 Lakhs – 1.80% + Risk Premium
- Retail Trade Upto 100 Lakhs – 2.00% + Risk Premium
Renewal Charge for TL O/s as 31.12
Renewal Charge for CC peak o/s calendar year 31.12
Q9. Where to apply?
- Regional Rural Bank – Up to 50 Lakhs
- Small Financial Bank – Up to 50 Lakhs
- Schedules Bank for Retail Trade – up to 1 Cr.
- Schedules Bank & Financial Institution ( Fund based and Nonfund base ) – Up to 2Cr.
Q10. What are the list of Documents for CGTMSE?
- Company/Firm KYC
- Directors/ Partners/ Proprietor KYC.
- Individual profile of Director/ Partners / Proprietors
- 3 Year Audited financial if Old Business
- Provisional Balance sheet
- Projections for the next 5 year considering finance amount
- Company profile
- Project report in case of new business
- GST certificate
- Last 12 months Bank statement
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