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.