CGTMSE Scheme 2026: Credit Guarantee Cover for MSE Loans up to ₹10 Crore
Credit Guarantee Fund Trust for Micro and Small Enterprises
Government-backed credit guarantee scheme facilitating collateral-free credit for eligible Micro and Small Enterprises. Under CGS-I, eligible fund-based and non-fund-based credit facilities can be covered up to ₹10 Crore per borrower through eligible Member Lending Institutions, with guarantee coverage of up to 90% depending on the borrower category.
Who Can Apply?
Verified criteria and borrower eligibility guidelines set by the Government of India.
Micro & Small Enterprises
New and existing eligible Micro and Small Enterprises engaged in manufacturing, services, trading and other activities permitted under CGTMSE can be considered for guarantee-backed credit.
Udyam Registration
A valid Udyam Registration Number is mandatory for obtaining new guarantee coverage under the CGTMSE scheme.
Viable Business Proposal
The lending institution independently assesses business viability, repayment capacity and creditworthiness before sanctioning the credit facility.
Women Entrepreneurs
Eligible women entrepreneurs can receive enhanced guarantee coverage of up to 90% under the applicable CGTMSE provisions.
Special Category MSEs
Eligible SC/ST entrepreneurs, persons with disabilities, transgender entrepreneurs, ZED-certified MSEs and MSEs in Aspirational Districts can receive guarantee coverage of up to 85%.
Existing MSE Borrowers
Eligible existing credit facilities may also be considered for coverage, subject to CGTMSE conditions regarding account status, restructuring and lender eligibility.
Key Features
Core benefits, guarantees, and subsidy structures under this flagship program.
Coverage up to ₹10 Crore
Under CGS-I, eligible fund-based and non-fund-based credit facilities can be covered up to ₹10 Crore per eligible borrower. Credit above ₹10 Crore may be sanctioned by the lender, but CGTMSE coverage remains restricted to the applicable ceiling.
Guarantee Cover up to 90%
Guarantee coverage generally ranges from 75% to 90% depending on the borrower category, location and applicable CGTMSE provisions.
Revised Annual Guarantee Fee
Standard Annual Guarantee Fee rates under CGS-I range from 0.37% to 1.20% depending on the credit slab, before applicable risk-based adjustments, discounts and category concessions.
Hybrid Security Model
Under Hybrid Security, the lender may take collateral for part of the credit facility while the remaining unsecured portion can be covered under CGTMSE up to the applicable scheme ceiling.
Trading Activities Covered
Eligible retail and wholesale trading activities are aligned with other eligible activities for guarantee coverage, fees and applicable credit ceilings.
Term & Working Capital Credit
Eligible term loans, working capital facilities and qualifying fund-based or non-fund-based facilities can be considered for CGTMSE guarantee coverage.
Scheme Benefits
Application Process
Prepare Loan Proposal
Prepare the business proposal, financial information, project report and supporting documents required by the chosen Member Lending Institution.
Apply to Member Lending Institution
Apply for the required term loan, working capital or other eligible credit facility with a CGTMSE-registered Member Lending Institution.
Credit Appraisal & Sanction
The Member Lending Institution independently evaluates project viability, repayment capacity and credit risk before sanctioning and disbursing the eligible credit facility.
CGTMSE Guarantee Cover
After sanction or disbursement as applicable, the Member Lending Institution submits the guarantee application to CGTMSE and obtains guarantee cover upon fulfilment of scheme conditions and payment of applicable fee.
Documents Required
Keep the following paperwork ready for instant verification and fast processing.
Frequently Asked Questions
Explore CGTMSE Credit Guarantee Support up to ₹10 Crore
Get support with eligibility assessment, DPR preparation, credit proposal structuring and coordination with eligible Member Lending Institutions.