Credit Guarantee Fund Scheme (CGTMSE)
This profile has been independently compiled from official gazette notifications and verified web domains. Source Authority Link: msme.gov.in Authority: Ministry of Finance • State/Region: Central Scheme (All India) • Last Audited: 29 Jul 2026
Quick AI Summary
A collateral‑free credit guarantee facility extended by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to enable micro and small enterprises (MSEs) to obtain bank loans up to Rs. 5 crore.
Detailed Summary
Scheme Overview
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), established under the Ministry of Micro, Small and Medium Enterprises, provides a guarantee cover of 75 % to 85 % on defaulted loans extended by participating banks and financial institutions. The guarantee is applicable to both term loans and working‑capital facilities, with a maximum sanctioned amount of Rs. 5 crore per borrower.
Objectives
To broaden financial inclusion for MSEs by mitigating credit risk for lenders, thereby encouraging the extension of credit without the requirement of collateral or third‑party guarantees.
Coverage
Guarantee cover is available for new as well as existing enterprises engaged in manufacturing or service activities, provided they satisfy the MSME definition (investment in plant & machinery ≤ 10 crore and turnover ≤ 50 crore for small enterprises; ≤ 1 crore and ≤ 5 crore respectively for micro enterprises).
Key Benefits & Financial Assistance
| Comparison Criteria | Benefits |
|---|---|
| Key Benefits |
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Eligibility Criteria Profile
| Comparison Criteria | Eligibility |
|---|---|
| Occupation Status | Self-Employed |
| Domicile State | All India (Central Scheme) |
Application Process Guide
- Identify a participating bank or financial institution.
- Submit the standard loan application along with the CGTMSE guarantee request form.
- The lending institution forwards the guarantee request to CGTMSE.
- CGTMSE evaluates eligibility and issues the guarantee cover, subject to compliance with scheme guidelines.
- Upon approval, the loan is disbursed to the enterprise.
Common FAQs regarding this Yojana
The scheme provides guarantee cover for loans up to Rs. 5 crore per borrower.
No. The scheme offers collateral‑free credit; the guarantee is provided by CGTMSE to the lender.
Both new and existing micro or small enterprises engaged in manufacturing or service activities, as defined under the MSME Act, are eligible.