Collateral-free Credit Guarantee
Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)
Get collateral-free credit guaranteed up to ₹10 Crore via Member Lending Institutions (MLIs)
₹10Cr
Max Coverage
Up to 90%
Guarantee Cover
Fast
Approval Window
No Collateral
Intent
- Guarantee Ceiling
- ₹10 Crore
- Coverage Range
- 75%–90%
- Eligible Facilities
- Term • WC • Non‑fund
- MLIs
- Banks • NBFCs • DFIs
- AGF
- Revised w.e.f. 01‑04‑2025
- Activation
- On AGF payment
01Overview
About CGTMSE
CGTMSE enables collateral‑free credit to Micro and Small Enterprises by providing a guarantee cover to Member Lending Institutions (MLIs), allowing banks/NBFCs to lend without third‑party guarantees or tangible collateral within scheme limits.
Effective April 1, 2025, the guarantee ceiling is enhanced to ₹10 Crore per eligible borrower under CGS‑I, broadening access for viable MSEs across manufacturing, services, and trading.
Coverage typically ranges from 75% to 90% depending on borrower category and ticket size, with women‑led enterprises eligible for 90% cover, and additional regional/category concessions as notified.
- 01
Collateral‑Free Lending
Guarantee cover to MLIs in lieu of collateral/third‑party guarantees for eligible MSE credit.
- 02
Higher Ceiling
Guarantee coverage up to ₹10 Crore per borrower under CGS‑I (Banks).
- 03
Priority Segments
Enhanced coverage for Women, SC/ST, PwD, ZED, Aspirational/ICDD, NER/J&K/Ladakh, Agniveers.
- 04
Wide Facility Types
Eligible for Term Loans, Working Capital, and select Non‑fund facilities as per CGTMSE norms.
02Who can apply
Eligibility Criteria
Eligible Borrowers
5 points- New and existing MSEs across manufacturing, services, and trading activities.
- Units must be viable and not in default as per MLI assessment and scheme norms.
- Applications are routed only through MLIs (banks/NBFCs/DFIs) registered with CGTMSE.
- Coverage subject to scheme guidelines and category‑wise caps.
- Single‑borrower applications; no portfolio‑wide lump‑sum cover.
Eligible Facilities
4 points- Term credit, Working Capital, Composite credit per MLI policy.
- Non‑fund‑based facilities as permitted by scheme guidelines.
- Aggregate guaranteed credit up to ₹10 Crore per borrower under CGS‑I.
- Guarantee activation on payment of Annual Guarantee Fee (AGF).
Priority Coverage
4 points- Women‑led enterprises: up to 90% guarantee cover.
- SC/ST, PwD, ZED, Aspirational Districts/ICDD: up to 85% (ICDD +5% over base).
- NER incl. Sikkim, J&K, Ladakh small credits: 80% cover.
- Agniveers and Transgender‑led units: notified relaxations/coverage as applicable.
03Paperwork
Required Documents
0 / 13 ready
Tick the documents you already have
KYC & Registration
Financials & Projections
Facility & Security
Priority Proofs
04Step by step
Application Process
- 01
Apply with MLI
3–10 DaysApproach an eligible bank/NBFC/DFI (MLI) with business plan and documents; MLI conducts appraisal.
Timelines vary by MLI and complexity.
- 02
Sanction & CGTMSE Proposal
2–5 DaysUpon in‑principle sanction, the MLI proposes the facility for CGTMSE guarantee coverage.
Subject to eligibility and category.
- 03
AGF Payment & Activation
Within 24 hours post submissionGuarantee is approved and becomes active on payment of Annual Guarantee Fee (AGF) by the MLI.
AGF slabs revised w.e.f. 01‑04‑2025.
- 04
Disbursement
As per sanctionMLI disburses as per sanction terms; monitoring continues through loan tenure; WC‑only cover is typically up to 5 years.
Scheme covenants apply mutatis mutandis.
05Why it's worth it
Key Benefits
Collateral‑Free Access
Facilitates lending without collateral or third‑party guarantees within scheme parameters.
- Mitigates security gaps
- Improves sanction probability
- Supports scaling
Enhanced Coverage
Higher guarantee cover for priority segments like Women (90%) and SC/ST/PwD/ZED/Aspirational (85%).
- ICDD +5% over base
- NER/J&K/Ladakh small tickets 80%
- Trading included
Higher Limit
Coverage up to ₹10 Crore per borrower under CGS‑I for Banks, expanding credit headroom.
- Term + WC + Non‑fund
- Composite structures
- MLI‑agnostic eligibility
Revised AGF
Reduced and slab‑wise Annual Guarantee Fee from April 1, 2025 lowers overall cost of credit.
- Revised slabs w.e.f. 01‑04‑2025
- Applied on guaranteed/outstanding
- MLI collects/pays
Subsidy Calculator
- Subsidy rate
- 75%
- Estimated subsidy
- ₹7,50,000
Capped at ₹90,00,00,000. Final subsidy depends on category, location and the sanctioning authority.
07Questions
Frequently Asked Questions
- Under CGS‑I (Banks), the ceiling is ₹10 Crore per eligible borrower effective April 1, 2025.
- Coverage ranges from 75% to 90% depending on the category, ticket size, and location; women‑led units are eligible for 90% cover.
- New or existing MSEs in manufacturing, services, and trading can apply through CGTMSE Member Lending Institutions (banks/NBFCs/DFIs).
- CGTMSE approves and activates coverage on payment of the Annual Guarantee Fee (AGF) by the MLI, typically within 24 hours after submission.
- AGF is slab‑based and revised w.e.f. 01‑04‑2025; charged on guaranteed amount in year‑1 and on outstanding thereafter, as per notified slabs.
- The scheme’s intent is collateral‑free lending; final sanction terms follow MLI credit policy and scheme eligibility.
- Term loans, working capital, and permitted non‑fund facilities are eligible within the scheme and MLI policy framework.
- Women‑led 90%; SC/ST/PwD/ZED/Aspirational 85%; NER/J&K/Ladakh small tickets 80%; ICDD gets +5% over base coverage.
Plan your EMI before you apply
See the monthly instalment, the real cost of interest and how the balance falls, year by year.
EMI Planner
Drag the sliders — everything updates live
Monthly EMI
₹32,241
Total interest
₹4.34 L
Total payable
₹19.34 L
Principal 78%
Interest 22%
Every ₹1 borrowed costs ₹1.29 in total.
What you pay each year
Illustrative only. Your actual rate depends on the lender, scheme and your credit profile.
Real outcomes
Success Stories
“Women‑led enterprise received 90% guarantee cover enabling collateral‑free sanction for term and WC limits.”
Anita VermaFood Processing UnitFunded: ₹1.20 Crore“Regional benefits supported a higher coverage, easing access to working capital and seasonal limits.”
NorthEast Crafts LLPHandicrafts ManufacturingFunded: ₹45 Lakhs“Composite facility covered under CGTMSE improved bankability without third‑party guarantees.”
TechServe SolutionsIT Services & TradingFunded: ₹3.50 Crore
CGTMSE
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