{"id":2003,"date":"2019-08-28T10:23:16","date_gmt":"2019-08-28T10:23:16","guid":{"rendered":"https:\/\/blog.indifi.com\/?p=2003"},"modified":"2026-06-09T10:50:33","modified_gmt":"2026-06-09T10:50:33","slug":"what-is-the-cgtmse-scheme-and-how-to-benefit-from-it","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/","title":{"rendered":"Credit Guarantee Fund Trust For Micro and Small Enterprises (CGTMSE Scheme)"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/11\/CGTMSC-Loan-Scheme-500x223.jpg\" alt=\"\" class=\"wp-image-14152\" width=\"822\" height=\"367\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/11\/CGTMSC-Loan-Scheme-500x223.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/11\/CGTMSC-Loan-Scheme-768x343.jpg 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/11\/CGTMSC-Loan-Scheme-1536x686.jpg 1536w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/11\/CGTMSC-Loan-Scheme-2048x914.jpg 2048w\" sizes=\"auto, (max-width: 822px) 100vw, 822px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CGTMSE Full Form is Credit Guarantee Fund Trust for Micro and Small Enterprises and the logo of (CGTMSE) \u2014 a colorful flying bird \u2014 reflects the entrepreneurial zest of the country\u2019s youth, who have sensational ideas, <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">but no third-party guarantee or collateral security to get loans from formal sources. There are many <a href=\"https:\/\/www.indifi.com\/collateral-free-business-loans-india\">business loans that are collateral free<\/a>. Look after how it is beneficial for MSMEs<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CGTMSE Loan aims to support these young, aspiring entrepreneurs in setting up sustainable micro and small enterprises, transforming them from employment seekers to employment providers. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/msme-loans\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1-500x91.jpg\" alt=\"\" class=\"wp-image-5348\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1.jpg 716w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/figure>\n<\/div>\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#What_Is_the_CGTMSE_Loan_Scheme\" >What Is the CGTMSE Loan Scheme?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Loan_Schemes_Covered_Under_CGTMSE_Scheme\" >Loan Schemes Covered Under CGTMSE Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Benefits_of_CGTMSE_Scheme\" >Benefits of CGTMSE Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Documents_Required_for_CGTMSE_Scheme\" >Documents Required for CGTMSE Scheme<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#1_Business_Documentation\" >1. Business Documentation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#2_Financial_Documents\" >2. Financial Documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#3_Personal_Documents_of_Borrower\" >3. Personal Documents of Borrower<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#4_Loan-Specific_Documents\" >4. Loan-Specific Documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#5_CGTMSE-Specific_Documentation\" >5. CGTMSE-Specific Documentation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#6_Other_Documents_if_applicable\" >6. Other Documents (if applicable)<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#CGTMSE_Scheme_Eligibility_Criteria\" >CGTMSE Scheme Eligibility Criteria&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#How_to_apply_for_CGTMSE_Loan_online\" >How to apply for CGTMSE Loan online?<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Step_1_Understand_Eligibility\" >Step 1: Understand Eligibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Step_2_Prepare_Required_Documents\" >Step 2: Prepare Required Documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Step_3_Choose_a_CGTMSE_Member_Lending_Institution\" >Step 3: Choose a CGTMSE Member Lending Institution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Step_4_Visit_the_BankNBFC_Website\" >Step 4: Visit the Bank\/NBFC Website<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Step_5_Submit_Application_with_Supporting_Documents\" >Step 5: Submit Application with Supporting Documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Step_6_Wait_for_Verification_and_Approval\" >Step 6: Wait for Verification and Approval<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Step_7_Loan_Sanction_and_Disbursement\" >Step 7: Loan Sanction and Disbursement<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#CGTMSE_Scheme_Fees_and_Interest_Rate\" >CGTMSE Scheme Fees and Interest Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#Why_to_Choose_CGTMSE_Scheme\" >Why to Choose CGTMSE Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#CGTMSE_lock-in_Period\" >CGTMSE lock-in Period<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#CGTMSE_New_Guidelines\" >CGTMSE New Guidelines<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.indifi.com\/blog\/what-is-the-cgtmse-scheme-and-how-to-benefit-from-it\/#FAQ\" >FAQ<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_the_CGTMSE_Loan_Scheme\"><\/span>What Is the CGTMSE Loan Scheme?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The CGTMSE scheme, a brainchild of the Government of India\u2019s Ministry of Micro, Small and Medium Enterprises, intends to improve the credit distribution system and ease the flow of credit to MSEs. (Micro and Small Enterprises). <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The unique offering fills the vacuum between an idea and its execution, by extending financial support to micro and small entrepreneurs. Under the CGTMSE scheme, eligible businesses can get a loan of up to \u20b91 crore from banks and financial institutions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also Read:- <a href=\"https:\/\/www.indifi.com\/blog\/lines-of-credit-online-lenders-vs-traditional-banks\/\">Lines of Credit: Online Lenders vs. Traditional Banks<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)<\/strong> scheme details:- <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Aspect<\/strong><\/th><th><strong>Details<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Objective<\/strong><\/td><td>To facilitate collateral-free credit to Micro and Small Enterprises (MSEs)<\/td><\/tr><tr><td><strong>Eligible Borrowers<\/strong><\/td><td>New and existing Micro and Small Enterprises (MSEs) engaged in manufacturing or service activities<\/td><\/tr><tr><td><strong>Guarantee Cover<\/strong><\/td><td>&#8211; Up to 85% for loans \u2264 \u20b95 lakh &#8211; 75% for loans between \u20b95 lakh and \u20b950 lakh<\/td><\/tr><tr><td><strong>Maximum Loan Amount<\/strong><\/td><td>\u20b92 crore per borrower<\/td><\/tr><tr><td><strong>Coverage Exceptions<\/strong><\/td><td>Retail trade, agriculture, educational institutions, and training institutions are excluded<\/td><\/tr><tr><td><strong>Tenure of Guarantee<\/strong><\/td><td>Up to the loan repayment period or 5 years, whichever is earlier<\/td><\/tr><tr><td><strong>Credit Facility Types<\/strong><\/td><td><a href=\"https:\/\/www.indifi.com\/term-business-loans-online-india\">Term loans<\/a>, <a href=\"https:\/\/www.indifi.com\/working-capital-loans-india\">working capital loans<\/a>, or a combination of both<\/td><\/tr><tr><td><strong>Guarantee Fee<\/strong><\/td><td>&#8211; 1% of the loan amount per annum &#8211; Reduced to 0.75% for North Eastern Region and women-led MSEs<\/td><\/tr><tr><td><strong>Implementation Agency<\/strong><\/td><td>Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)<\/td><\/tr><tr><td><strong>Participating Lenders<\/strong><\/td><td>Public, private, regional rural banks (RRBs), and select financial institutions<\/td><\/tr><tr><td><strong>Application Process<\/strong><\/td><td>Loans are applied for through the respective lender, which then submits a request for CGTMSE cover<\/td><\/tr><tr><td><strong>Major Benefits<\/strong><\/td><td>&#8211; Encourages entrepreneurship &#8211; Enhances financial inclusion &#8211; Reduces reliance on collateral<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Loan_Schemes_Covered_Under_CGTMSE_Scheme\"><\/span>Loan Schemes Covered Under CGTMSE Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The CGTMSE scheme primarily supports <a href=\"https:\/\/www.indifi.com\/collateral-free-business-loans-india\">collateral-free loans for MSMEs<\/a>. Below are the types of loan schemes available under the CGTMSE scheme:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Loan Scheme<\/strong><\/th><th><strong>Description<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Term Loans<\/strong><\/td><td>Loans for acquiring fixed assets like machinery, equipment, and infrastructure development.<\/td><\/tr><tr><td><strong>Working Capital Loans<\/strong><\/td><td>Loans to meet the day-to-day operational expenses of businesses, including inventory and receivables.<\/td><\/tr><tr><td><strong>Hybrid Model<\/strong><\/td><td>Combines partial collateralized loans with CGTMSE coverage for the uncovered portion.<\/td><\/tr><tr><td><strong>Micro and Small Business Startups<\/strong><\/td><td>Special focus on startups needing financial support to launch and scale operations.<\/td><\/tr><tr><td><strong>Women Entrepreneur Loans<\/strong><\/td><td>Loans with preferential terms, including reduced guarantee fees, for women-led enterprises.<\/td><\/tr><tr><td><strong>Manufacturing and Service Sector Loans<\/strong><\/td><td>Support for MSMEs in these sectors to purchase machinery, equipment, or expand services.<\/td><\/tr><tr><td><strong>Retail Trade Finance<\/strong> (Selective)<\/td><td>Applicable only for certain trade segments eligible under MSME classification.<\/td><\/tr><tr><td><strong>Co-Lending and Cluster Financing<\/strong><\/td><td>Loans extended under co-lending models or to enterprises in identified industry clusters.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_CGTMSE_Scheme\"><\/span>Benefits of CGTMSE Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The primary goal of CGTMSE is to establish a credit relief system that facilitates enhanced credit accessibility for the MSME sector. The scheme&#8217;s key attributes make it a practical financial assistance option for MSMEs<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Eligible Activities:<\/strong> Businesses falling within the manufacturing and service-based categories, including retail trade, are eligible under the CGTMSE scheme. However, educational and training institutions, self-help groups, and agricultural activities are not covered by this scheme.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Loan Amount:<\/strong> MSE owners can access credit facilities of up to \u20b9200 lakh. Regional Rural Banks (RRBs) and specific financial institutions, on the other hand, provide credit facilities up to \u20b950 lakh.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Guarantee Coverage:<\/strong> CGTMSE provides a guarantee covering 75-85% of the repayment amount in the event of a default on the principal loan. This guarantee is applicable for principal loan amounts up to \u20b950 lakh.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Collateral:<\/strong> Under CGTMSE, no collateral or third-party guarantee is required, offering a hassle-free lending option for businesses.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Encourages Entrepreneurship<\/strong><br>The scheme supports individuals with innovative business ideas, helping them overcome financial barriers.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Improved Loan Availability<\/strong><br>Banks and financial institutions are more willing to lend to micro and small enterprises due to the credit guarantee, fostering growth opportunities.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Enhanced Credibility<\/strong><br>Being part of a government-backed scheme can improve the business&#8217;s reputation with lenders and other stakeholders.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/msme-loans\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1-500x91.jpg\" alt=\"\" class=\"wp-image-5348\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1.jpg 716w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_CGTMSE_Scheme\"><\/span>Documents Required for CGTMSE Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here is the list of CGTMSE loan documents mentioned below<\/p>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#357719\"><span class=\"ez-toc-section\" id=\"1_Business_Documentation\"><\/span>1. Business Documentation<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Business Registration Certificate<\/strong>: Proof that the enterprise is registered (e.g., GST registration, MSME certificate, or shop establishment license).<\/li>\n\n\n\n<li><strong>Business Plan<\/strong>: A detailed blueprint explaining the nature of the business, its operations, financial projections, and loan utilization.<\/li>\n\n\n\n<li><strong>Proof of Ownership\/Lease Agreement<\/strong>: For business premises.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#357719\"><span class=\"ez-toc-section\" id=\"2_Financial_Documents\"><\/span>2. Financial Documents<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bank Statements<\/strong>: Last 6 to 12 months&#8217; statements of the business or personal account.<\/li>\n\n\n\n<li><strong>Income Tax Returns (ITR)<\/strong>: Filed ITR for the past 2-3 years (if applicable).<\/li>\n\n\n\n<li><strong>Financial Statements<\/strong>: Balance sheet, profit and loss account, and cash flow statement (audited or self-declared).<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#357719\"><span class=\"ez-toc-section\" id=\"3_Personal_Documents_of_Borrower\"><\/span>3. Personal Documents of Borrower<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Identity Proof<\/strong>: Aadhaar Card, PAN Card, Passport, Voter ID, or Driving License.<\/li>\n\n\n\n<li><strong>Address Proof<\/strong>: Utility bills, passport, or any valid government-issued proof.<\/li>\n\n\n\n<li><strong>Photographs<\/strong>: Recent passport-sized photographs.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#357719\"><span class=\"ez-toc-section\" id=\"4_Loan-Specific_Documents\"><\/span>4. Loan-Specific Documents<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Loan Application Form<\/strong>: Duly filled and signed by the applicant.<\/li>\n\n\n\n<li><strong>Project Report<\/strong>: If the loan is for setting up a new project, include detailed cost estimates, resources, and expected outcomes.<\/li>\n\n\n\n<li><strong>Quotation for Equipment or Machinery<\/strong>: For loans used to purchase equipment or machinery.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#357719\"><span class=\"ez-toc-section\" id=\"5_CGTMSE-Specific_Documentation\"><\/span>5. CGTMSE-Specific Documentation<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Undertaking<\/strong>: A declaration stating that the borrower does not have collateral to offer.<\/li>\n\n\n\n<li><strong>Agreement with Lending Institution<\/strong>: As per the CGTMSE guidelines.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#357719\"><span class=\"ez-toc-section\" id=\"6_Other_Documents_if_applicable\"><\/span>6. Other Documents (if applicable)<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Existing Loan Details<\/strong>: For borrowers with prior loans, details of outstanding dues.<\/li>\n\n\n\n<li><strong>Partnership Deed\/Articles of Association<\/strong>: If the enterprise is a partnership or company.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CGTMSE_Scheme_Eligibility_Criteria\"><\/span>CGTMSE Scheme Eligibility Criteria&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To make credit accessible to all micro and small enterprises, the government has set simple eligibility criteria for CGTMSE loan. Any registered enterprise, with a workable business idea, can avail the CGTMSE loan scheme, which is open for both new and existing businesses.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Credit facilities are extended to Micro &amp; Small units, defined as per the MSMED Act 2006, based on the investment in Plant &amp; Machineries\/Equipment.<\/li>\n\n\n\n<li>Borrowers engaged in Wholesale trade &amp; Educational\/Training Institutes are eligible for credit facilities.<\/li>\n\n\n\n<li>Credit facilities are also sanctioned for Agricultural activities such as Fishing, Poultry, Dairy, etc.<\/li>\n\n\n\n<li>Units in both manufacturing and services sectors, including Retail Trade, can be covered under CGTMSE.<\/li>\n\n\n\n<li>Covered units must be engaged in activities approved by CGTMSE for inclusion in the scheme.<\/li>\n\n\n\n<li>The maximum CGTMSE loan limit  for coverage to a single borrower should not exceed <em>Rs. 500<\/em> <em>Lakhs<\/em>.<\/li>\n\n\n\n<li>For loans above Rs. 10 Lakhs, Partial Collateral security may be required.<\/li>\n\n\n\n<li>Both Term Loan and Working Capital (both fund-based and non-fund based) can be covered under the scheme.<\/li>\n\n\n\n<li>Composite Loan structures are also eligible for coverage.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_apply_for_CGTMSE_Loan_online\"><\/span>How to apply for CGTMSE Loan online?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)<\/strong> scheme is designed to facilitate collateral-free loans to Micro and Small Enterprises (MSEs). Here&#8217;s a step-by-step guide to applying for a CGTMSE loan online:<\/p>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#726182\"><span class=\"ez-toc-section\" id=\"Step_1_Understand_Eligibility\"><\/span>Step 1: Understand Eligibility<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">Ensure that your business falls under the Micro or Small Enterprise category as defined by the <strong>MSME Act<\/strong>. Also, verify that the loan you seek qualifies under the CGTMSE scheme.<\/p>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#726182\"><span class=\"ez-toc-section\" id=\"Step_2_Prepare_Required_Documents\"><\/span>Step 2: Prepare Required Documents<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">Typically, you will need:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Business registration or incorporation certificate.<\/li>\n\n\n\n<li>PAN Card and Aadhaar of the business owner.<\/li>\n\n\n\n<li>Bank statements (last 6\u201312 months).<\/li>\n\n\n\n<li>Project report or business plan.<\/li>\n\n\n\n<li>Proof of business address.<\/li>\n\n\n\n<li>GST registration certificate, if applicable.<\/li>\n\n\n\n<li>Financial statements (e.g., profit and loss statement, balance sheet).<\/li>\n\n\n\n<li>Details of existing loans, if any.<\/li>\n<\/ol>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#726182\"><span class=\"ez-toc-section\" id=\"Step_3_Choose_a_CGTMSE_Member_Lending_Institution\"><\/span>Step 3: Choose a CGTMSE Member Lending Institution<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">CGTMSE does not directly provide loans. Instead, it works with banks, NBFCs, and other financial institutions. Some popular options include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>State Bank of India (SBI)<\/li>\n\n\n\n<li>ICICI Bank<\/li>\n\n\n\n<li>HDFC Bank<\/li>\n\n\n\n<li>Bank of Baroda<\/li>\n\n\n\n<li>NBFCs like Bajaj Finserv, etc.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#726182\"><span class=\"ez-toc-section\" id=\"Step_4_Visit_the_BankNBFC_Website\"><\/span>Step 4: Visit the Bank\/NBFC Website<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Go to the official website of the chosen lending institution.<\/li>\n\n\n\n<li>Look for the <strong>CGTMSE Loan<\/strong> or MSME loan section.<\/li>\n\n\n\n<li>Fill in the online application form with details like your business profile, loan requirement, and contact details.<\/li>\n<\/ol>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#726182\"><span class=\"ez-toc-section\" id=\"Step_5_Submit_Application_with_Supporting_Documents\"><\/span>Step 5: Submit Application with Supporting Documents<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">Upload all the necessary documents mentioned above. Ensure that they are clear and complete to avoid delays.<\/p>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#726182\"><span class=\"ez-toc-section\" id=\"Step_6_Wait_for_Verification_and_Approval\"><\/span>Step 6: Wait for Verification and Approval<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">The bank\/NBFC will:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Evaluate your application and documents.<\/li>\n\n\n\n<li>Check your business&#8217;s financial health.<\/li>\n\n\n\n<li>Process the loan under the CGTMSE guarantee framework if approved.<\/li>\n<\/ol>\n\n\n\n<h5 class=\"wp-block-heading has-text-color\" style=\"color:#726182\"><span class=\"ez-toc-section\" id=\"Step_7_Loan_Sanction_and_Disbursement\"><\/span>Step 7: Loan Sanction and Disbursement<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">Once approved, the loan amount will be disbursed to your business account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"has-vivid-green-cyan-color has-text-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/wp-admin\/post.php?post=1573&amp;action=edit\">Everything You Wanted To Know About PMEGP Loan<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CGTMSE_Scheme_Fees_and_Interest_Rate\"><\/span>CGTMSE Scheme Fees and Interest Rate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The CGTMSE charge has two categories <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>CGTMSE Guarantee Cover Annual Service Fee <\/strong><\/td><td><strong>CGTMSE<\/strong> <strong>Guarantee Cover Fee<\/strong><\/td><\/tr><tr><td>MLIs also have to pay an annual service fee, ranging from 0.5% to 0.75% of the credit guarantee, payable every year before 1st June.<\/td><td>Member Lending Institutions (MLIs) will have to pay a guarantee fee to the government within 30 days from credit disbursement. The guarantee fee structure varies from 0.75% to 1.5% of the sanctioned loan amount.<\/td><\/tr><tr><td><strong>CGTMSE loan interest rate:-<\/strong> <strong>Up to 0.50% per annum<\/strong> of the guaranteed amount.<br>May vary based on the type of enterprise, loan amount, or region.<\/td><td><strong>CGTMSE loan interest rate:<\/strong>&#8211; <strong>1% per annum<\/strong> of the sanctioned loan amount.<br><strong>0.75% per annum<\/strong> for loans to women entrepreneurs, Micro Enterprises, or units in the North-Eastern region (including Sikkim).<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_to_Choose_CGTMSE_Scheme\"><\/span>Why to Choose CGTMSE Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The CGTMSE scheme not only grants credit up to \u20b91 crore, but it does so without asking for a third-party guarantee or collateral security. Furthermore, the CGTMSE scheme provides a credit guarantee, liberating entrepreneurs from the burden of <a href=\"https:\/\/www.indifi.com\/blog\/what-is-loan-repayment-different-options-types\/\">repaying the loan<\/a>, if by any chance their business fails.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If a project fails, and the borrower cannot repay the loan, the CGTMSE scheme will directly pay the outstanding loan amount to the lending institution to compensate for the monetary loss they suffered due to non-repayment of the loan.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The quantum of the credit guarantee, or credit cover, varies between 50 percent and 85 percent of the loan amount, depending on a range of factors, including the gender, industry type, the purpose, and the amount of loan.<\/p>\n\n\n\n<p class=\"has-vivid-green-cyan-color has-text-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/wp-admin\/post.php?post=1956&amp;action=edit\">Top Facts About PMRY Loan<\/a> <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CGTMSE_lock-in_Period\"><\/span>CGTMSE lock-in Period<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The lock-in period under the CGTMSE scheme is 18 months from the date of the first loan disbursement, during which lenders (MLIs) cannot invoke the credit guarantee. This period ensures that lenders make genuine recovery efforts before claiming the guarantee in case of borrower default. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After the lock-in period, lenders can invoke the guarantee if the loan is classified as a Non-Performing Asset (NPA) and recovery efforts are documented. Exceptions may apply in extraordinary cases, such as the borrower\u2019s demise. This mechanism ensures fair recovery practices and prevents misuse of the guarantee facility.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CGTMSE_New_Guidelines\"><\/span>CGTMSE New Guidelines<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">1. Enhanced Guarantee Limit: The maximum guarantee cover has been raised from \u20b92 crore to \u20b95 crore, facilitating larger loans without the need for collateral.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">2. Reduced Guarantee Fees: For loans up to \u20b91 crore, the annual guarantee fee has been reduced significantly, from a peak rate of 2% to as low as 0.37%, lowering the cost of borrowing for enterprises.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">3. Simplified Claim Process: For loans up to \u20b910 lakh, lenders no longer need to initiate legal proceedings to settle claims, streamlining the process for small borrowers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4. Increased Fund Infusion: A corpus infusion of \u20b99,000 crore has been made to provide collateral-free guaranteed credit of up to \u20b92 lakh crore.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">5. Focus on Informal Micro Enterprises (IMEs): Special provisions and simplified processes have been introduced to extend credit guarantees to informal micro-enterprises, further enhancing their access to credit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQ\"><\/span>FAQ<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Which bank provides a CGTMSE loan?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many banks and financial institutions in India provide loans under the CGTMSE scheme. Some of these banks include:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>State Bank of India (SBI)<\/strong><\/li>\n\n\n\n<li><strong>Punjab National Bank (PNB)<\/strong><\/li>\n\n\n\n<li><strong>Bank of Baroda (BoB)<\/strong><\/li>\n\n\n\n<li><strong>Canara Bank<\/strong><\/li>\n\n\n\n<li><strong>Union Bank of India<\/strong><\/li>\n\n\n\n<li><strong>Bank of India (BoI)<\/strong><\/li>\n\n\n\n<li><strong>Central Bank of India<\/strong><\/li>\n\n\n\n<li><strong>Indian Bank<\/strong><\/li>\n\n\n\n<li><strong>UCO Bank<\/strong><\/li>\n\n\n\n<li><strong>ICICI Bank<\/strong><\/li>\n\n\n\n<li><strong>HDFC Bank<\/strong><\/li>\n\n\n\n<li><strong>Axis Bank<\/strong><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Apart from these, several regional rural banks (RRBs) and <a href=\"https:\/\/www.indifi.com\/\">non-banking financial companies<\/a> (NBFCs) also participate in the CGTMSE scheme. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here is a simplified version of the content:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Who can get a CGTMSE loan?<\/strong><br>Micro, Small, and Medium Enterprises (MSMEs) including individuals, sole proprietors, LLPs, partnerships, private limited companies, and registered companies can apply for this loan scheme.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Is CGTMSE Loan is for new business?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, the CGTMSE loan is available for new businesses, making it a valuable option for entrepreneurs starting their ventures. The scheme is specifically designed to provide collateral-free credit to both new and existing Micro and Small Enterprises (MSEs) in the manufacturing and service sectors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What is CGTMSE portal?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The CGTMSE Portal is an online platform where lenders can apply for guarantee coverage, track applications, and manage claims under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. It is also a resource for borrowers to understand the scheme and check updates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What are the schemes covered under CGTMSE Scheme?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although CGTMSE itself does not provide a direct subsidy, it can be combined with government subsidy programs like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.indifi.com\/blog\/pmegp-loan\/\">Prime Minister\u2019s Employment Generation Programme (PMEGP)<\/a><\/strong>: Offers subsidies for new businesses.<\/li>\n\n\n\n<li><strong>Credit Linked Capital Subsidy Scheme (CLCSS)<\/strong>: Provides a 15% subsidy for technology upgrades in MSEs.<\/li>\n\n\n\n<li><strong>Stand Up India<\/strong>: Supports loans for women, SC\/ST entrepreneurs, with certain benefits.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What is Locked in Period in CGTMSE Scheme?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CGTMSE Full Form is Credit Guarantee Fund Trust for Micro and Small Enterprises and the logo of (CGTMSE) \u2014 a colorful flying bird \u2014 reflects the entrepreneurial zest of the country\u2019s youth, who have sensational ideas, but no third-party guarantee or collateral security to get loans from formal sources. There are many business loans that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14152,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[811],"tags":[],"class_list":["post-2003","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-scheme"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/2003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=2003"}],"version-history":[{"count":50,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/2003\/revisions"}],"predecessor-version":[{"id":14455,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/2003\/revisions\/14455"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/14152"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=2003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=2003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=2003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}