What is CGTMSE Loan Guarantee?
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is the backbone of collateral-free lending to MSMEs in India. It guarantees loans up to ₹5 crore from member banks and financial institutions to micro and small enterprises — without any collateral or third-party guarantee. CGTMSE covers 75-85% of the loan amount (up to 85% for micro enterprises, women entrepreneurs, NER/hilly states). The trust was set up jointly by the Ministry of MSME and SIDBI in 2000. Annual guarantee fee: 0.25-2.0% of the loan amount (subsidised for micro/women). Over 60 lakh guarantees issued worth ₹5 lakh crore+. Member Lending Institutions (MLIs): 130+ banks/NBFCs including PSBs, private banks, RRBs, SFBs, NBFCs. The borrower applies through the bank; the bank applies to CGTMSE for guarantee. New: CGTMSE 2.0 with enhanced limits.
CGTMSE Loan Guarantee — Quick Overview
| Scheme Name | CGTMSE Credit Guarantee Scheme 2026 — ₹5 Crore Collateral-Free MSME Loan Guarantee |
| Launched By | Government of India |
| Launch Year | 2000 |
| Benefit | Up to ₹5 crore collateral-free MSME loan with 75-85% government guarantee — women entrepreneurs get 85% coverage |
| Category | MSME & Industry |
| Last Verified | 23 May 2026 |
| Official Portal | https://www.cgtmse.in |
CGTMSE (क्रेडिट गारंटी फंड ट्रस्ट) — बिना collateral के MSME को ₹5 करोड़ तक का लोन गारंटी। बैंक की 75-85% loss की government coverage। महिला उद्यमी और micro enterprises को 85% तक गारंटी। 130+ बैंक/NBFC member। 60 लाख+ guarantees जारी।
₹5 करोड़ तक collateral-free लोन गारंटी — 75-85% सरकारी कवरेज
Benefits of CGTMSE Loan Guarantee
Up to ₹5 crore collateral-free MSME loan with 75-85% government guarantee — women entrepreneurs get 85% coverage
Who is Eligible for CGTMSE Loan Guarantee?
- ✓New or existing Micro and Small Enterprises (manufacturing or service sector)
- ✓Loan amount: up to ₹5 crore per borrower
- ✓MSME registration (Udyam Registration) required
- ✓Loan must be from a CGTMSE Member Lending Institution (bank/NBFC)
- ✓No collateral or third-party guarantee to be taken by the bank
- ✓Retail trade enterprises excluded (manufacturing/services only)
Documents Required for CGTMSE Loan Guarantee
How to Apply for CGTMSE Loan Guarantee Online?
- 1Get Udyam Registration for your micro or small enterprise before approaching any bank.
- 2Approach a CGTMSE Member Lending Institution — a PSU/private bank, RRB, SFB or NBFC — with your loan request.
- 3Submit your business plan/project report, KYC documents (Aadhaar, PAN) and last 6 months' bank statements.
- 4Existing businesses also submit IT returns or balance sheet along with the loan application.
- 5The bank sanctions the loan without collateral or a third-party guarantee.
- 6The bank, not you, applies to CGTMSE (cgtmse.in) for the 75-85% guarantee cover.
- 7Pay the annual guarantee fee (0.25-2.0% of loan amount, lower for micro units and women entrepreneurs) as billed by the bank.
Official Government Portal
www.cgtmse.in is the only authorised application channel, and the government charges nothing there — never pay anyone to apply on your behalf.
🔗Apply on www.cgtmse.in