Loan guarantee

CGTMSE

Credit Guarantee Fund Trust for Micro and Small Enterprises

Collateral-free business loans for micro and small enterprises, backed by a government credit guarantee.

Check my eligibility Talk to an expert
Loan amount
Up to ₹10 Crore
Collateral
Not required
Guarantee cover
75% to 90%
Run by
SIDBI & Ministry of MSME
Overview

About CGTMSE

CGTMSE provides a credit guarantee to banks and NBFCs so they can lend to micro and small enterprises without asking for collateral security or a third-party guarantee. It is one of the most widely used routes for first-generation entrepreneurs who don't have property to mortgage.

The guarantee covers term loans and working capital for both new and existing units in manufacturing, services and retail trade. The guarantee limit was enhanced from ₹5 Crore to ₹10 Crore in 2025.

Key benefits

  • No collateral or third-party guarantee required
  • Covers term loans, working capital and composite loans
  • Guarantee cover of 75% to 90% depending on borrower category
  • Higher cover for women entrepreneurs and micro units
  • Available through most public, private and small finance banks
  • Can be combined with subsidy schemes such as PMEGP

Who is eligible

  • Udyam-registered micro or small enterprise
  • New or existing unit in manufacturing, services or retail trade
  • Loan sanctioned by a CGTMSE member lending institution
  • Viable project with a sound repayment plan
  • Account not in default with any lender

Documents required

  • Udyam registration certificate
  • KYC of promoters (PAN, Aadhaar)
  • Detailed project report
  • Last 2 to 3 years' financials and ITR (existing units)
  • 12 months' bank statements
  • GST registration and business address proof

How Vertex helps with CGTMSE

  1. 1Eligibility checkWe review your business profile against the scheme rules and related state incentives.
  2. 2Documents & project reportWe prepare the DPR, financials and registrations such as Udyam, GST and FSSAI.
  3. 3Application & lender liaisonWe file the application and coordinate with banks, NBFCs and agencies.
  4. 4Sanction & follow-upWe follow up until sanction, disbursement and any subsidy release.

Frequently asked questions

An annual guarantee fee is charged on the sanctioned amount. Lenders usually pass it on to the borrower, so we factor it into your loan costing upfront.

No. You apply for a loan with a member bank or NBFC and the lender covers it under CGTMSE. We prepare your proposal and approach the right lenders for you.

Scheme limits, subsidy rates and timelines are indicative and subject to the latest government guidelines and lender policies. Vertex Certification is a private consultancy and is not affiliated with any government body.

Related schemes

View all schemes

Mudra Loan

Collateral-free loans up to ₹20 Lakh for small businesses in manufacturing, trading and services.

View scheme

PMEGP

Credit-linked subsidy of 15% to 35% for setting up new micro enterprises in manufacturing and services.

View scheme

Stand-Up India

Bank loans from ₹10 Lakh to ₹1 Crore for SC/ST and women entrepreneurs starting a greenfield enterprise.

View scheme