Credit Guarantee Fund Scheme for MSEs (CGTMSE)
Ministry of MSME Manufacturing GOVERNMENT SUPPORT ACTIVE

Credit Guarantee Fund Scheme for MSEs (CGTMSE)

(CGTMSE)
Primary Benefit

Upto 0% subsidy (Max eligible loan: ₹50,000,000)

<p>The Credit Guarantee Scheme for Micro &amp; Small Enterprises (CGTMSE) facilitates collateral-free and third-party guarantee-free credit to Micro and Small Enterprises (MSEs), especially first-generation entrepreneurs. It is managed by the Credit Guarantee Fund Trust for Micro and Small Enterprises.</p>

Benefits Details

  • Credit guarantee coverage for loans up to ₹5 Crore
  • No collateral security or third-party guarantee required
  • Guarantee coverage ranges from 75% to 90% depending on category
  • Additional support for Women, SC/ST, PwD, ZED-certified enterprises, Aspirational Districts, NER, J&K, and Ladakh
  • Hybrid Security Model allowed for partial collateral loans

Who can apply?

Any individual meeting the following guidelines is eligible for applying under this scheme:

Target Beneficiary Eligibility Criteria
Age Limit Min Age: 18 years old. No upper age limits.
Target Gender Suitable for Any category of applicants.
Category Required Open to All social category classes.
Location Cover Any Areas.
State Cover Applicable across all states of India.

Application Workflow Process

1
Online Submission

Submit your promoter profile and bank-ready DPR details on the official nodal portal.

2
Nodal Review

Department agency verifies your details and forwards recommendation to local banks.

3
Bank Sanction

Bank evaluates credit feasibility and sanctions the term loan and working capital.

4
Subsidy Release

Nodal agency releases capital margin money subsidy to a TDR block accounts.

Required Documents Checklist

Keep the following digital copies ready before filling out the online application form:

Aadhaar Card

PAN Card

Udyam Registration Certificate

Business Address Proof

Project Report / Business Plan

Bank Statements

Income Tax Returns (if applicable)

GST Registration (if applicable)

Financial Statements

Loan Application Form

Machinery Quotations / Purchase Details

Passport Size Photos

Frequently Asked Questions

No. Government support programs are strictly intended for setting up **new** micro enterprises and commercial expansions. Existing units availing of other programs are not eligible.

The program offers margin capital subsidy. However, bank credit interest schedules will be charged at standard commercial base lending rates unless supplemented by state interest refund policies.

The Entrepreneurship Development Programme (EDP) training course is mandatory for all subsidy releases and takes around 5 to 10 days depending on the project investment scale.
Quick Info
Ministry Ministry of MSME
Category Manufacturing
Max Subsidy 0%
Status Active
Need Help?

Contact your local District Industries Centre (DIC) or Sri Yojana support desk for guidance and project filing support.

Request Guidance
Tags
credit-guarantee-fund-scheme-for-mses-cgtmse subsidy micro-enterprise