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Introduction to CGTMSE Loan Scheme
The CGTMSE Loan Scheme, or Credit Guarantee Fund Trust for Micro and Small Enterprises, is a flagship program by the Government of India. It provides collateral-free credit to MSMEs. Launched in 2000, it helps small businesses get loans without pledging assets. In 2026, updates like CGTMSE II raise coverage to ₹5 crore. This boosts startups and expansions in manufacturing, services, and trading. Stand-Up India Scheme Loans in 2026: Up to ₹2 Crore for Women & SC/ST Entrepreneurs
Banks lend without fear due to guarantee. Over 1 crore units benefited. Scheme run by SIDBI and Ministry of MSME. It promotes inclusive growth. New entrepreneurs access funds easily. Mudra Loan for Dairy Farm 2026: Get a Loan of ₹10 Lakh
Why Choose CGTMSE Loan Scheme?
CGTMSE removes collateral barrier. Loans up to ₹5 crore covered. Interest competitive. MSMEs save on security costs. In 2026, digital apply faster.
Scheme suits new and existing units. Coverage 75-85%. Fee low, 0.37-1.35%. Repayment flexible.
Benefits of CGTMSE Scheme
Reduces risk for lenders. Empowers women-led MSMEs. Links with Mudra, Stand-Up India.
Key Advantages Table
| Advantage | Description |
|---|---|
| No Collateral | Loans without assets. |
| High Coverage | Up to ₹5 crore in 2026. |
| Low Fee | 0.37-1.35% annual. |
| Quick Sanction | Digital process. |
| Inclusive | Priority for women, SC/ST. |
Key Features of CGTMSE Loan Scheme
Scheme guarantees term loans and working capital. For micro and small enterprises.
Coverage Limits
Up to ₹5 crore per borrower. 85% for micro, 75% for small.
Coverage Details Table
| Enterprise Type | Coverage % | Max Limit |
|---|---|---|
| Micro | 85% | ₹5 Crore |
| Small | 75% | ₹5 Crore |
| Women-Led | 80% | ₹5 Crore |
Guarantee Fee
Annual fee on outstanding. Refundable if no claim.
Eligibility for CGTMSE Loan Scheme
New or existing MSMEs. Registered under MSME Act. No default history. Banks assess viability.
Eligibility Criteria
- Udyam registration.
- Positive net worth.
- Sectors: Manufacturing, services, retail.
Interest Rates and Charges
Rates bank-dependent, 8-12%. No extra for guarantee.
Interest Rate Table
| Loan Type | Rate Range |
|---|---|
| Term Loan | 8-11% |
| Working Capital | 9-12% |
How to Apply for CGTMSE Loan
Apply via banks or online portal.
Application Process
- Get Udyam number.
- Approach bank.
- Submit project.
- Bank applies to CGTMSE.
- Approval quick.
Required Documents
Standard list.
Documents Checklist Table
| Document | Purpose |
|---|---|
| Udyam Cert | Registration. |
| PAN/GST | ID/Tax. |
| Project Report | Plan. |
| Financials | Statements. |
Link with Other Schemes
Combines with PMMY, ECLGS.
Participating Banks
Over 150 like SBI, PNB.
Bank Options Table
| Bank | Features |
|---|---|
| SBI | Online. |
| PNB | Fast. |
Benefits for MSMEs
Growth without risk. Job creation.
Challenges and Tips
Fee adds cost. Viability key.
Tips: Strong plan. Timely repay.
Risk Management
Monitor funds. Insure assets.
Costs and Earnings
Loan ₹1 crore, fee ₹1 lakh/year. Earnings depend on business.
Cost Breakdown Table
| Item | Cost |
|---|---|
| Fee | 0.37-1.35%. |
| Interest | 8-12%. |
Success Stories
Many MSMEs scaled up.
Future in 2026
Higher limits, digital.
Conclusion
CGTMSE empowers MSMEs.
FAQ Section
What is CGTMSE Scheme?
Guarantee for MSME loans.
Max Coverage?
₹5 crore.
Eligibility?
MSMEs.
Documents?
Udyam, PAN.
Apply How?
Banks.
Fee?
Low annual.
Collateral?
No.
Women Benefit?
Higher coverage.
Repayment?
Flexible.
Updates 2026?
₹5 crore limit.
FAQ Table
| Question | Answer |
|---|---|
| Max Coverage | ₹5 Crore |
| Eligibility | MSMEs |
| Documents | Udyam, PAN |
| Apply | Banks |
| Fee | 0.37-1.35% |
| Collateral | No |
| Women | 80% Coverage |
| Repayment | Bank Terms |
| 2026 Updates | Higher Limits |
| Banks | 150+ |