CGTMSE Scheme Loan
Collateral-free MSME credit with up to 85% government guarantee cover.
- Loan Amount
- Up to ₹10 Cr
- Guarantee Cover
- Up to 85%
- Collateral
- None required
- For
- MSMEs & startups
Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), banks lend to MSMEs without collateral because the government guarantees up to 85% of the exposure. The 2024 enhancement raised the ceiling to ₹10 crores — making this the best route for manufacturers, service businesses and startups without property to pledge.
Features & benefits
- No collateral or third-party guarantee needed
- 85% cover for micro/small units, women entrepreneurs and North-East units
- 75% standard cover for other MSMEs; 50% for retail trade up to ₹1 Cr
- Term loans and working capital both covered
- Hybrid security model for exposures of ₹10–20 Cr
- Concessional guarantee fees for women and SC/ST entrepreneurs
Eligibility
- New or existing MSME in manufacturing or services
- Valid Udyam registration
- Viable project or established operations
- Not a defaulter with any bank
Documents required
- Udyam registration and business KYC
- Project report with cost estimates (for new units)
- Last 2 years' ITR and financial statements
- Last 6 months' bank statements
- Promoter KYC and address proof
How it works
- 1
Apply online or on a call — 2 minutes
- 2
We compare offers across 8+ banks for your profile
- 3
Choose your best offer; we handle documentation
- 4
Sanction and disbursal — most files in 24–48 hours
Estimate your EMI
Monthly EMI
₹21,494
- Principal
- ₹10,00,000
- Total interest
- ₹2,89,634
- Total payable
- ₹12,89,634
Frequently asked questions
Is a CGTMSE loan really collateral-free?
Yes — the bank cannot ask for collateral or a third-party guarantee on covered loans. The government trust guarantees the bank against default, which replaces the collateral.
Who pays the guarantee fee?
An annual guarantee fee (roughly 0.37%–1.35% of the sanctioned amount, slab-wise) is payable, usually passed on to the borrower. Women-led and SC/ST enterprises get concessional rates.
Can a brand-new startup apply?
Yes. New units qualify on the strength of a viable project report and promoter profile. We prepare bankable project reports as part of our service.
Which banks process CGTMSE loans fastest?
Public-sector banks have the largest CGTMSE books, while several private banks and SFBs are faster on smaller tickets. We route your file based on ticket size and sector.