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Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)
Ministry of Micro, Small and Medium Enterprises
Collateral-free guarantee cover up to ₹10 crore per borrower· Credit Support
What is this?
Under CGTMSE, collateral-free loans are provided to Micro and Small Enterprise (MSE) units — a Trust jointly set up by the Ministry of MSME and SIDBI guarantees 75% of the loan amount to the lending bank.
Objectives
- Reduce the collateral burden on MSEs seeking term loans or working capital.
- The Trust's corpus is contributed by the Government of India and SIDBI.
Who can apply?
- Loans sanctioned to Micro and Small Enterprise units per the Ministry of MSME's definition, across all eligible activities including trading.
What do you get?
- Collateral-free loan for an individual MSE, on payment of a guarantee fee to the bank.
- Guarantee coverage capped at ₹10 crore per borrower (irrespective of activity, including trading), based on outstanding credit facilities.
- Modified (higher) guarantee cover available for women entrepreneurs and units in the Northeast Region.
How to apply
- Apply directly to a Member Lending Institution (bank, NBFC, or financial institution) registered with CGTMSE, for a term loan or working-capital loan.
- Check the official CGTMSE website for the current list of Member Lending Institutions.
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Credit Support
Disclaimer: Costs and sample reports are published by PMEGP / MSME authorities. FoundersOffice Idea Browser is an independent discovery and briefing tool — not affiliated with the Government of India, MSME, KVIC, DIC, or any bank. Nothing here is a sanction, loan offer, or guarantee of subsidy. Heuristics and future scores are advisory; verify on the official portal before applying.
Source: “Playbook of Government Schemes and Initiatives for Startups” (Govt of India, June 2026) · verify against the official scheme source before relying on this for a filing.