Svasti Consultancy

CGTMSE is a Government of India scheme launched in the year 2000 in collaboration with the Small Industries

Development Bank of India (SIDBI). It offers loans to Micro and Small Enterprises (MSEs) without any collateral or thirdparty

guarantee. It also provides guarantees to eligible MSEs on loans availed from Member Lending Institutions (MLIs), i.e.,

public, private and foreign banks and financial institutions.

Under the CGTMSE scheme, MSEs have been availing credit guarantees up to a ceiling limit of ₹2 crore. This has been

revised to ₹5 crore from April 2023.

Providing collateral is often a significant hurdle for small businesses, many of which have limited or no tangible assets to

pledge. The CGTMSE scheme alleviates this issue by offering collateral-free loans, which means that MSEs can secure

financing without needing to risk their existing assets. This approach encourages entrepreneurship by allowing startups

and smaller enterprises to access the capital they need to grow without the added pressure of collateral requirements.

• Easiest way to get the funds from bank/ NBFC and reduce the heavy capital investment by Promotors orowners. Its in a yearly- renewal basis and need to pay only interest instead of full EMI. so, they don’t need higher working capital for day-to-day Project activity. High chances of avail extra funds from other banks as current obligation is lower

Business vintage of at least 2 years, It should not be Start-ups or newer projects.Needs to maintain Bank Accounts, Fill ITR of 2 years etc.Business should not be blacklisted and not at Negative Areas.Trust, small businesses, and NGOs are not eligible.turnover above 1 crore, and a good CIBIL track.