CGTMSE Loan (Unsecured MSME Loan)

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CGTMSE Loan (Unsecured MSME Loan)

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme was introduced by the Government of India to provide financial support to Micro, Small, and Medium Enterprises (MSMEs). This loan is primarily an unsecured loan that does not require collateral, making it an attractive option for small businesses that lack sufficient assets for security.

  • Instant Business Growth
  • 24/7 Quality Service
  • Easy Customer Service
  • Quality Cost Service
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What is the CGTMSE Loan Scheme?

Getting a business loan without collateral is possible with the CGTMSE Loan Scheme, launched by the Ministry of MSME and SIDBI in 2000. The scheme is designed to support Micro and Small Enterprises (MSEs) with no need for collateral.

Key Features & Benefits

  • Credit Guarantee: CGTMSE guarantees up to 85% of the loan amount for businesses.
  • Wide Lender Network: You can apply through banks, SIDBI, NBFCs, etc.
  • Support for Underserved Groups: Priority for SC/ST founders, women entrepreneurs, PwD, etc.
  • Flexibility: No need for collateral or third-party guarantor.

Eligibility Criteria

To qualify for CGTMSE, your business needs to meet the following requirements:

  • Micro or Small Enterprise under MSME definitions
  • Official registration on the Udyam Portal
  • Compliance with taxes, GST filings, and local licenses
  • Not falling under excluded sectors

Eligible & Ineligible Sectors

Eligible Sectors

  • Manufacturing units
  • Service providers like IT, hospitality, and repair services
  • Trading & agro-based businesses

Ineligible Sectors

  • Educational institutions
  • Training providers
  • Self-Help Groups & cooperatives

CGTMSE Charges & Coverage

The guarantee fee ranges from 1% to 1.5% of the loan amount. The maximum loan coverage is up to ₹2 crore.