Credit Guarantee Fund Scheme for MSEs (CGTMSE)
<p>The Credit Guarantee Scheme for Micro & 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>
Dynamic Subsidy Scaling Matrices
Under the official guidelines of this scheme, final margin money subsidies scale dynamically based on your gender, region of business setup, and social categories. Below is the detailed rate catalog:
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
Eligibility Criteria
New and existing Micro & Small Enterprises
Service enterprises, retail/wholesale trade, and educational/training institutions are also eligible
Enterprise must be registered on the Udyam Portal
Activities should be eligible under MSMED Act
Loan must be sanctioned by eligible Member Lending Institutions (MLIs)
How to Apply
Apply to MLI
Apply through eligible Banks/NBFCs that are Member Lending Institutions (MLIs) under CGTMSE
Submit Loan Application
Submit loan application to the lending institution
CGTMSE Coverage
Bank forwards eligible cases for CGTMSE guarantee coverage
Online Submission
Submit your promoter profile and bank-ready DPR details on the official nodal portal.
Nodal Review
Department agency verifies your details and forwards recommendation to local banks.
Bank Sanction
Bank evaluates credit feasibility and sanctions the term loan and working capital.
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
Need Help?
Contact your local District Industries Centre (DIC) or Sri Yojana support desk for guidance and project filing support.
Request Guidance