Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)
Overview
The Credit Guarantee Scheme is an initiative by the Ministry of MSME to promote the growth and sustainability of micro and small enterprises (MSEs) by offering collateral-free loans. The scheme covers loans up to ₹2 crores without requiring third-party guarantees.
Eligibility Criteria
Applicable For
- Both new and existing enterprises are eligible.
- The enterprise should have a viable business model and be bankable.
Loan Coverage & Guarantee
Loan Limit
Up to ₹2 Crore
Guarantee Coverage
75%–85% of the loan amount
Interest Rate
As per RBI guidelines (typically 11-12%)
Benefits
- Collateral-free loans up to ₹50 lakh.
- Enhanced loan amounts with guarantee coverage from 75% to 85%.
- Financial support for micro and small enterprises across various sectors.