CGTMSE — what it is, and who it fits.
A government guarantee that stands in for collateral, so micro and small enterprises can borrow without pledging assets.
Credit Guarantee Fund Trust for Micro and Small Enterprises
The headline terms at a glance — set by the scheme and the lender, and subject to change.
What it is
The scheme in plain English — no jargon, no promises.
CGTMSE isn't a loan — it's a guarantee. A trust set up by the Ministry of MSME and SIDBI guarantees a portion of the lender's exposure, so a micro or small enterprise can get a term loan or cash-credit line without pledging collateral or a third-party guarantee. The lender still lends and underwrites; the guarantee reduces its risk.
The coverage ceiling was raised to ₹5 crore, and the guarantee covers a share of any default (higher for women-owned, ZED-certified and aspirational-district units). A guarantee fee applies, on a slab by loan size. It's the classic answer to the collateral-gap rejection.
Who qualifies
A first read on whether the scheme reaches a file like yours — your consultant confirms the details.
- Udyam-registered micro or small enterprise in manufacturing or most services
- New or existing unit with a viable business plan
- No collateral or third-party guarantee required (some trade categories are excluded)
The loans that ride this scheme
These families on our shelf can be arranged under the scheme — browse the products in each.
Honest scope — CGTMSE cover rides the lender's own limits and eligibility, and certain categories (e.g. retail trade) are excluded. Confirm the current ceiling, fee and cover with the lender — we help match and apply.
See if CGTMSE fits your venture
A short enquiry, a reference id, and a named consultant on the phone within one working day. Free to check — the lender underwrites and decides, and any money moves directly between you and the lender.
Check eligibilityTalk to an advisor