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.
You can apply for a CGTMSE loan if:
This reduces the risk for banks and makes them more confident in lending to small businesses.
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.
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.
The interest rate varies by bank or NBFC and is usually linked to the base rate or MCLR. It is competitive but not subsidized.