What is CGTMSE?

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is a scheme launched by the Government of India to help micro and small businesses get loans without any collateral.

The main goal is to make it easier for small business owners and new entrepreneurs to access funding, even if they don’t have any property or security to offer.

Key Features of CGTMSE Loan

  • Loan Amount:   Up to ₹2 Crore
  • No Collateral Required:  No need to mortgage property or offer any guarantee
  • For Whom:  New and existing Micro and Small Enterprises (MSEs)
  • Eligible Sectors:  Manufacturing, Services, and Retail businesses
  • Guarantee Coverage:  75% to 85% of the loan amount (covered by the government)
  • Loan Partners:  Recognized Banks and NBFCs (Non-Banking Financial Companies)

Who Can Apply?

You can apply for a CGTMSE loan if:

  • You own a Micro or Small business
  • Your business is in the Manufacturing, Services, or Retail sector
  • You haven’t defaulted on any previous bank loans
  • You have a viable business plan or an ongoing business
Apply for CGTMSE Loan

Required Documents

  • Aadhaar Card, PAN Card
  • Business Registration or Udyam Certificate
  • Last 12 Months Bank Statements
  • Project Report or Business Plan
  • ITR, if available
  • GST Registration (if applicable)

How Does CGTMSE Work?

  1. You apply for a loan through a bank or NBFC that offers CGTMSE-backed loans
  2. The lender checks your eligibility and business plan
  3. If approved, the loan is given without asking for any collateral
  4. In case of default, CGTMSE pays up to 75–85% of the loan amount to the lender

This reduces the risk for banks and makes them more confident in lending to small businesses.

Benefits of CGTMSE

  • No need for collateral or third-party guarantee
  • Loan up to ₹2 Crore
  • Government-backed assurance to banks
  • Encourages startups and first-time business owners
  • Quick processing and approval

How to Apply?

  • Visit to realfinserv.com
  • Submit your documents and business plan
  • Ask specifically for a CGTMSE loan
  • The bank will guide you through the process
Apply Now

Conclusion

The CGTMSE scheme is a great opportunity for small business owners in India to get easy access to funds without any security or collateral. If you have a business idea or want to grow your existing business, this government-backed loan can help you achieve your dreams.

Frequently Asked Questions

No. Under CGTMSE, the loan is provided without any collateral or third-party guarantee.

CGTMSE offers 75% to 85% credit guarantee cover to the lending bank/NBFC in case of default by the borrower.

Most major nationalized banks, private sector banks, and NBFCs that are registered with CGTMSE offer these loans.

  • Aadhaar Card & PAN Card
  • Udyam MSME Registration
  • Bank Statement (12 months)
  • Business Plan or Project Report
  • ITR/GST (if applicable)

The interest rate varies by bank or NBFC and is usually linked to the base rate or MCLR. It is competitive but not subsidized.

  • Visit a CGTMSE-registered bank/NBFC
  • Submit your business documents and apply for a loan under CGTMSE
  • You can also consult a loan advisor or DSA for faster application