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Home / Business Finance & Loans / CGTMSE Loan Support
Last updated: 2 October 2026
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantees loans given by banks and eligible lenders to MSEs without collateral or third-party guarantees. Expertvuw’s team helps you understand eligibility, cover and fees, and prepare a strong loan application.
CGTMSE, set up by the Government of India and SIDBI, provides a guarantee to member lending institutions for credit facilities extended to micro and small enterprises without collateral security or third-party guarantee. The borrower applies to the bank or lender as usual; the lender covers the loan under CGTMSE.
From 1 April 2025, the maximum guarantee ceiling doubled from ₹5 crore to ₹10 crore, and the annual guarantee fee was reduced — for example, 0.37% for loans up to ₹10 lakh, rising in slabs to 1.20% for loans between ₹8 crore and ₹10 crore. Guarantee cover is 75% for most borrowers, and higher for specified categories — such as 85% for micro enterprises up to ₹5 lakh and 90% for women entrepreneurs — with an additional 5% in credit-deficient districts.
Both term loans and working capital facilities to new and existing MSEs in manufacturing, services and eligible retail trade can be covered. The lender decides whether to sanction the loan and cover it under CGTMSE.
Basis: CGTMSE scheme guidelines; CGTMSE circular of 18 March 2025 (guarantee fee revision and ₹10 crore ceiling from 1 April 2025); lender CGTMSE product documents. Last updated: 27 September 2026.
₹10 crore per borrower from 1 April 2025.
Loans covered without collateral or third-party guarantee.
75% generally; up to 85–90% for specified categories.
90% cover.
From 0.37% (up to ₹10 lakh) to 1.20% (₹8–10 crore).
Coverage is decided by the member lending institution.
CGTMSE cover is not automatic.
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CGTMSE connects with these services.
MSME credit options.
Business loan readiness.
Working capital limits.
ZED certification can add cover benefits.
Check eligibility and cover.
Build the loan application pack.
You apply to a member lender.
Lender appraises the proposal.
Lender covers the loan under CGTMSE.
Annual guarantee fee paid as applicable.
Keep the account in good standing.
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Share your query and our team will reply during business hours.
A trust set up by the Government of India and SIDBI that guarantees collateral-free loans to micro and small enterprises.
₹10 crore from 1 April 2025.
Generally 75%, and up to 85–90% for specified categories such as micro loans and women entrepreneurs.
Annual fees range from 0.37% for loans up to ₹10 lakh to 1.20% for loans of ₹8–10 crore.
No. You apply to a bank or eligible lender, which covers the loan under CGTMSE.
ACS – Director, Expertvuw Management Pvt Ltd
Loan and funding support is provided by Expertvuw’s team. Expertvuw is not a lender, loan agent or investment adviser — loans are sanctioned by banks and NBFCs, and grants by the relevant authorities, at their own discretion. Certificates and audits are issued by independent Chartered Accountants.