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Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Government-backed guarantee that lets banks give collateral-free loans to micro and small enterprises. The ceiling is Rs 10 crore per borrower.

Run by

Ministry of MSME and SIDBI (CGTMSE)

Funding

Up to ₹10,00,00,000

Credit guarantees for credit up to Rs 10 crore to MSEs (raised from Rs 5 crore, effective 01.04.2025). Coverage for women-led enterprises raised from 85% to 90%; annual guarantee fee reduced for guarantees above Rs 1 crore.

Who can apply

Micro or small enterprise borrowing from a CGTMSE Member Lending Institution (bank, RRB or eligible financial institution)
Collateral-free and third-party-guarantee-free credit

How to apply

Ask your bank (a CGTMSE Member Lending Institution) to cover your loan under CGTMSE; the lender applies for the guarantee.

Last checked

2026-10-11

Official page ↗

BizGrantAI is an independent guide, not a government agency. Rules and amounts change, so always confirm on the official page before applying. We never charge for applications.