CGTMSE — Credit Guarantee Fund Trust for Micro & Small Enterprises — Frequently Asked Questions

The maximum loan amount covered under the standard track is ₹2 crore per borrower. The guarantee cover varies: 85% for micro enterprises for loans up to ₹5 lakh, 75% for other MSEs, and 50% for retail trade.

CGTMSE is a rolling scheme with no fixed deadline. Applications can be made at any time through member lending institutions.

Micro and small enterprises in manufacturing or services, whether new or existing, are eligible. The loan must be sourced from a lending institution that is a CGTMSE member.

The scheme itself does not mandate DPIIT or MSME registration, but your lending institution may require it as part of their loan application process.

No, CGTMSE is a debt guarantee program. It does not take equity. It provides a guarantee to the lender, enabling you to get a collateral-free loan. You repay the loan as per terms.

You will typically need a business plan, project report, and financial statements. Since you apply through the bank, they may also require KYC documents, proof of business existence, and income tax returns.

Do not apply to CGTMSE directly. Identify a CGTMSE-member bank or NBFC (most major banks are members), apply for a business term loan or working capital loan in the usual way, and inform the bank that you require CGTMSE cover. The bank will process the loan and register it with CGTMSE.

The annual guarantee fee (AGF) is borne by the borrower and is paid to CGTMSE through the lending institution. The fee rate varies based on loan amount and borrower category.

CGTMSE — Credit Guarantee Fund Trust for Micro & Small Enterprises is offered by Ministry of MSME, a government body. It is provided as non-dilutive funding.