CGTMSE Loans refer to financial assistance provided under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. This scheme was launched by the Ministry of Micro, Small and Medium Enterprises (MSME) and SIDBI (Small Industries Development Bank of India). The main aim of this scheme is to support small business owners, startups, and entrepreneurs by giving them access to collateral-free loans from banks and financial institutions.
Collateral-Free: One of the biggest benefits of CGTMSE loans is that they are completely collateral-free. The government takes care of the risk on behalf of the borrower.
Loan Amount: Businesses can get loans up to ₹5 crore under this scheme.
Coverage: The scheme covers term loans and working capital loans both.
Guarantee Cover: The trust provides a guarantee cover of up to 75% to 85% of the loan amount, depending on the category of the borrower.
Eligible Businesses: Only Micro and Small Enterprises (MSEs) can avail these loans, including startups, manufacturers, traders, and service providers.
