CGTMSE full form is Credit Guarantee Fund Trust for Micro and Small Enterprises.

It was set up by Government of India and Small Industries Development Bank of India.

It was launched in the year 2000.


This scheme provides loans to MSME enterprises without any third-party guarantee or collateral.

In this scheme, a loan up to Rs 2 Crores can be given to MSME.

These enterprises can avail the CGTMSE Scheme

Manufacturing Activity
Service activity

Existing as well as new Micro, Small and Medium enterprise eligible in this scheme.

Self Help Groups, Educational Institution, Retail Trades are not eligible in this scheme.

Term Loan or Working Capital Loan both are eligible for guarantee cover under this scheme.

AGF refers to Annual Guarantee Fees

Up to 5 Lakhs -1%+ Risk Premium

Above 5 Lakhs and up to 50 Lakhs- 1.5%+ Risk Premium

Above 50 Lakhs and up to 2 Crores- 1.80% + Risk Premium

Risk Premium calculated as per extant guidelines of the Trust.

For the first year, AGF is charged on the guaranteed amount.

Second-year onwards calculated an outstanding amount.

Scheduled Commercial Banks and Regional Rural Banks associated with this scheme.

Private sector and Foreign Banks eligible for finance in this scheme there name mentioned in the Schedule I to the RBI Act, 1934.

Maximum Risk cover for Micro Enterprises
Loans up to Rs 5 Lakhs- 85%

A loan above Rs 5 Lakhs and Up to Rs 2 Crores – 75%

When CGTMSE accounts closed bank need to inform the date of closure of loan

Account to CGTMSE. In this Annual Guarantee, Fees is calculated up to date of    
closure of loan account on the pro-rata basis.

In Guarantee Application Form need to mention

Pan Number
Bank Account Number
Udyog Aadhaar Number

Lock-in the period in CGTMSE is 18 months from either the date of the last disbursement of loans to the borrower. Or date of the guarantee cover come into force in respect of   credit facility.

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