The CGTMSE Scheme MSME (Credit Guarantee Fund Trust for Micro and Small Enterprises) was jointly established by the Ministry of MSME and SIDBI to facilitate collateral-free credit to small businesses. Under the CGTMSE Scheme MSME framework, micro and small business owners can secure institutional loans from financial institutions without providing third-party guarantees or pledging physical property.
Overview of CGTMSE Scheme MSME
The primary goal of the CGTMSE Scheme MSME is to strengthen the credit delivery system and enable first-generation entrepreneurs to set up micro and small enterprises. By providing guarantee cover to lending institutions, the trust reduces credit risk and encourages banks to extend funds to eligible business entities.
Important Information
Eligibility & Benefits
- Eligibility
- New and existing micro and small enterprises engaged in manufacturing or service activities, holding a valid Udyam Registration Number.
- Benefits
- Collateral-free credit guaranteed up to ₹10 crore, with enhanced guarantee cover for women entrepreneurs, SC/ST entrepreneurs, persons with disabilities, ZED-certified units, and units in the North East, Jammu & Kashmir, or Ladakh.
- Required documents
- Udyam Registration certificate, business/project details, loan application as required by the lending bank.
How to Apply
- Application process
- Apply for the loan with guarantee cover through any member lending institution (bank/NBFC) empanelled with CGTMSE, along with a valid Udyam Registration.
Official Source
Ministry of Micro, Small and Medium Enterprises
Visit Official Website / Apply
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Source: CGTMSE Official Website
Last verified: 2026-09-06
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