Business finance
CGTMSE Scheme Loan
Under the Credit Guarantee Fund Trust for Micro and Small Enterprises, the government guarantees a large share of the lender's exposure. That lets banks sanction term loans and working capital to MSMEs with no collateral and no third-party guarantee.
- Interest rate
- 8.50% – 14% p.a.
- Loan amount
- Up to ₹5 Crore
- Tenure
- Up to 10 years
- Processing fee
- 0.5% – 1.5% plus guarantee fee
Features
What the cgtmse loan gives you
- Guarantee cover of 75-85% of the credit facility
- No collateral and no third-party guarantee needed
- Covers both term loan and working capital in a composite facility
- Higher cover for women entrepreneurs, SC/ST units and units in aspirational districts
- Annual guarantee fee charged on the outstanding, not the sanction
Eligibility
Who qualifies
- New or existing micro and small enterprise with Udyam registration
- Manufacturing or service activity (retail trade is now also covered)
- Facility must not be backed by collateral security
- Promoters with a clean credit history and no prior default
- Viable project report with realistic projections
Documents
Checklist to keep ready
KYC
- • PAN
- • Aadhaar
- • Photographs of all promoters
Enterprise
- • Udyam registration certificate
- • GST registration
- • Constitution documents
- • Business licences and permissions
Project
- • Detailed project report with cost of project and means of finance
- • Quotations for machinery and civil work
- • Projected financials for 3-5 years
- • Existing ITR and financials where the unit is operational
Calculator
Estimate your EMI and eligibility
Indicative figures only. Your final rate depends on the lender's assessment of your credit profile, income and, for secured loans, the property.
Monthly EMI
₹79,182
- Principal
- ₹50,00,000
- Total interest
- ₹16,51,324
- Total payable
- ₹66,51,324
Your personalised explanation will appear here. Indicative only — final approval depends on the lender.
Want the full picture?
Read our written eligibility guide — how FOIR at 80% of income works, credit score bands, and eligibility checklists for all 13 loan products.
Read the Eligibility GuideFAQs
CGTMSE Loan questions
Related loan services
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