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MSME & Startup Funding

CGTMSE Scheme

Unlock collateral-free funding for your business with government-backed credit guarantees. We help you navigate CGTMSE and other guarantee frameworks to secure higher loan sanctions with lower risk.

₹10 Crore

Max Limit for MSEs

₹20 Crore

Max Limit for Startups

Up to 85%

Guarantee Coverage

What is CGTMSE?

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a safety net for lenders, providing guarantees for loans extended to MSEs without the need for traditional collateral or third-party guarantees.

Collateral Free

Obtain working capital and term loans without providing physical assets as security.

High Limits

Enhanced limits up to ₹10 Crore for businesses and ₹20 Crore for recognized startups.

Reduced Risk

Lower risk for banks translates to better interest rates and higher sanction probability.

Inclusive Cover

Special coverage of 85% for Women, SC/ST, and units in the North East Region.

Eligibility Criteria

MSE Definition

Both New and Existing Micro and Small Enterprises as per MSME Act are eligible.

DPIIT Startups

Recognized startups are eligible for the Credit Guarantee Scheme for Startups (CGSS).

Sectors Covered

Manufacturing, Services, and Retail Trade (with certain limits) sectors are covered.

Viable Proposal

Must have a technically feasible and commercially viable business plan approved by a bank.

Member Lending Institutions

Over 100+ Banks, NBFCs, and RRBs are part of the CGTMSE network.

Major Guarantee Frameworks

CGTMSE

Primary scheme for MSEs with limits up to ₹10 Crore.

CGSS

Dedicated scheme for DPIIT-recognized Startups up to ₹20 Crore.

CGFMU

Guarantee for MUDRA (PMMY) loans up to ₹10 Lakh.

CGSSI

Guarantee for Stand-Up India project loans.

Why Choose Our Guarantee Advisory?

We specialize in optimizing your credit profile to meet the stringent "Guarantee Tagging" requirements of banks.

Strategic Profiling

Structuring your financials to ensure 100% compliance with CGTMSE norms.

Bank Selection

Identifying the right Member Lending Institution (MLI) based on your sector.

Hybrid Solutions

Expertise in mixing partial collateral with guarantee to maximize limit sanction.

Fee Guidance

Advising on the Annual Guarantee Fee (AGF) and ensuring no hidden costs.

Guarantee Coverage

Extent of guarantee coverage provided to banks under the scheme.

Borrower Category Max Cover
Micro Enterprises (< ₹5 Lakh) 85%
Women / SC / ST Entrepreneurs 85%
MSEs in NER (Including Sikkim) 80%
General Category (Most MSEs) 75%

Workflow to Funding

Our structured approach ensures your transition from "Applicant" to "Guaranteed Borrower" is seamless.

01
Financial Audit & Structuring

We review your financial health and structure your balance sheets to meet lenders' credit appraisal norms.

02
DPR & Project Submission

Preparing a high-quality Detailed Project Report that highlights your business's ability to service the debt.

03
MLI Liaisoning

Coordinating with one of the 100+ Member Lending Institutions for project assessment and credit appraisal.

04
Guarantee Tagging & Sanction

Ensuring the bank successfully applies for the guarantee "tag" on the CGTMSE portal for final loan disbursal.

Document Checklist

Required documents for guarantee application and bank appraisal.

KYC: Aadhaar & PAN (Promoters & Entity)
Udyam Registration Certificate (URC)
ITR & Audited Balance Sheets (Last 3 Years)
Detailed Project Report (DPR) / Profile
GST Registration & Last 12 Months Returns
6-12 Months Bank Statements (All Accounts)

Our documentation experts provide a detailed kit specific to your sector upon sign-up.

Frequently Asked Questions

Common queries regarding the CGTMSE and guarantee frameworks.

Yes. Under CGTMSE, the trust provides a guarantee to the bank, replacing the need for traditional collateral. However, this depends on the bank's assessment of your project's viability.

Borrowers are required to pay an Annual Guarantee Fee (AGF). Recently, these fees were reduced significantly and start as low as 0.37% p.a., depending on the loan size and borrower category.

Yes, the CGSS (Credit Guarantee Scheme for Startups) is specifically designed for DPIIT-recognized startups, focusing on potential and viability rather than historical revenue.

Yes, CGTMSE now allows "Hybrid Security." You can provide partial collateral (like property) and cover the remaining portion of the risk under the guarantee scheme.

Leverage Credit Guarantees for Your Business

Stop letting collateral hold you back. Consult with our experts to identify the best guarantee scheme for your expansion.