How much of the loan is covered?

Up to 85%, depending on the borrower category and the loan size, with the higher slabs reserved for micro enterprises, women-led units and units in specified regions. The exact slab in force is confirmed with the lender at sanction, because the Trust revises them.

What does the guarantee cost?

A guarantee fee in the first year and an annual service fee thereafter, both computed on the guaranteed amount and both set by the Trust. They are charged to you along with the lender's own interest, so a CGTMSE loan should be compared on total cost, not on the headline rate.

Can I use it for working capital, or only for machinery?

Both. Term loans and working-capital limits are eligible, and it is common to cover a composite facility. What matters is that the activity qualifies and the enterprise is registered as micro or small.

My business has no property to pledge. Is that a problem?

That is precisely the situation the scheme was created for. The absence of collateral is not a disqualification here — the business's own viability is what the case rests on.

MSME Finance

CGTMSE Business Loan

Collateral-free funding for micro and small enterprises, backed by the Credit Guarantee Fund Trust — the scheme built for a business with the order book but not the security.

Overview

What Is A CGTMSE Loan?

CGTMSE is a credit guarantee scheme, not a lender. The Credit Guarantee Fund Trust for Micro and Small Enterprises guarantees a large share of a loan the bank gives you, so the bank can lend against your business rather than against property you may not have.

It exists for a specific and very common situation: a viable micro or small enterprise with orders, customers and a working model, but no free collateral to pledge. Project Funding India identifies the lenders actively writing CGTMSE-backed cases and prepares the file the way the scheme requires.

Key Features & Benefits

No collateral and no third-party guarantee for the covered portion
Guarantee cover up to 85% of the loan, by borrower category and amount
Term loan and working-capital limits both eligible
Available to manufacturing and service enterprises alike
Higher cover for micro enterprises, women-led units and units in specified regions

Eligibility Criteria

A micro or small enterprise as classified under the MSMED Act
Udyam registration in force
An operating track record — most lenders look for around three years
Manufacturing or service activity; retail trade is treated separately
Clean credit record for the enterprise and its promoters

What The Fee Structure Looks Like

A guarantee fee is payable on the covered amount in the first year
An annual service fee follows in later years
Both are set by the Trust and revised from time to time
They sit on top of the lender's own interest and processing charges

Rates, tenures and eligibility shown on this page are indicative market ranges and are subject to the sanctioning bank / NBFC's credit policy. They are not an offer or a commitment.

Quick Facts

Loan AmountUp to ₹5 Crore

Interest RateFrom 14.0% p.a. (profile-based)

TenureUp to 60 Months

Guarantee CoverUp to 85% of the loan

CollateralNone for the covered portion

Processing Time15 – 30 Business Days

Apply For This Loan Documents Required Ask On WhatsApp

Or call +91 8087674850

Figures shown are indicative and vary by lender, rating and case profile. Your sanctioned terms are confirmed only in the lender's sanction letter.

How It Works

From Enquiry To Disbursement In 4 Steps

Share Your Requirement

Tell us your funding need — amount, purpose and business profile — via form, call or WhatsApp.

Document Assessment

Our advisory team reviews your documents and matches you with the right lender / product.

Sanction & Approval

We coordinate with banks and NBFCs for evaluation, valuation and credit sanction.

Disbursement

Funds are disbursed directly to your business bank account after final agreement.

FAQs