Subsidy Schemes

CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises:

CGTMSE scheme is introduced to support Business with adequate flow of debt or Loans to micro, small & medium enterprises irrespective of collateral availability. An entrepreneur can avail Working Capital Loans, Project Loans or other expansion loans without collateral under CGTMSE Scheme. In other words if an entrepreneur has viable business idea with visible executions capabilities then  Funds can be availed under CGTMSE Scheme without collateral.

What is the CGTMSE?

A special protection is given to the Micro, Small and Medium enterprises via the MSME Act, 2006. These are small-scale industries which require immunity and special protection to flourish. One of the government-sponsored schemes for MSMEs is the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises).

This trust is providing Credit Guarantee to a financial institution on extending credit facility to MSMEs without any collateral. The scheme provides assurance to Banks that in case of default by the borrower then trust will bear the shortfall in Loan Recovery as specified under the guarantee cover provided by Trust.

The objectives of this fund are:

1. To support the financial viability of projects of MSMEs.

2. To ensure flow of funds for viable projects which otherwise would get stuck due to non availability of collateral.

Under this scheme, a credit facility up to Rs. 200 lakhs can be availed by an MSME based on the Business Prospectus, prospective investments & past exposure in prospective project. A special preference is given to the women entrepreneurs who are eligible for this scheme.

What are the fees charged by the CGTMSE?

There is annual fee charged by the trust which varies upon the amount of credit facility / funding availed under this scheme.

Which enterprises can avail the CGTMSE fund?

All MSME entities can avail funding facility under this scheme who is engaged in the process of:

1. manufacturing activity

2. service activity,


1. Retail Trade

2. Educational Institutions


Important Note