Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

iAbout This Scheme

CGTMSE provides credit guarantee to banks and financial institutions for collateral-free loans up to ₹5 crore to micro and small enterprises. It was set up jointly by the Ministry of MSME and SIDBI in 2000. The guarantee covers 75-85% of credit facility in case of default, encouraging lending without collateral.

🎁Key Benefits

• Credit guarantee cover up to ₹5 crore for collateral-free loans
• Guarantee covers 75–85% of default amount
• Available through member lending institutions (MLIs)
• Enables MSEs to access formal credit without collateral
• Annual guarantee fee (AGF) paid by lender or borrower
• Covers both new and existing enterprises

✅Eligibility Criteria

• 1
  Micro and small enterprises as per MSMED Act 2006
• 2
  New and existing manufacturing and service sector MSEs

📝How to Apply

❓Frequently Asked Questions