Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
The MSME Credit Guarantee Scheme, managed by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), is a flagship initiative launched by the Ministry of MSME and SIDBI. The scheme provides financial institutions with credit guarantees to encourage collateral-free lending to new and existing micro and small enterprises. By mitigating the risk for lenders, it facilitates easier access to credit for entrepreneurs who lack tangible collateral or third-party guarantees. The scheme covers manufacturing and service activities, including retail trade. In the event of a default by the borrower, the trust covers a substantial portion of the loss incurred by the lending institution, thereby fostering a robust ecosystem for small business growth and entrepreneurship across India.
Eligibility
- • Target: founder
- • Category: MSME Finance
- • State: All India
Documents required
- ☐ Business Registration/Udyam Registration Certificate
- ☐ Detailed Project Report (DPR)
- ☐ Identity and Address Proof of Promoters
- ☐ Financial Statements for the last 3 years (for existing units)
- ☐ Bank Loan Application Form
- ☐ IT Returns of the business
Frequently asked questions
Who is eligible for Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)?
Targeted at founders in All India under the MSME Finance category. Verify full eligibility on the official portal before applying.
What is the benefit amount?
Collateral-free credit up to ₹5 crore
How do I apply?
Apply directly on the official government portal linked above. YojanaRadar never charges to apply for any government scheme.
Is the deadline fixed?
Rolling applications. Confirm on the official portal.