Get up to Rs 5 crore loan for your business without bank security. Check details

Oct 10, 2023 Girish Khurana

The government’s Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE) is among the biggest and most prominent initiatives taken to provide micro and small enterprises (MSEs) with collateral-free loans

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All new and existing MSEs in manufacturing or service activity excluding agriculture, and self-help groups (SHGs) can seek loans with CGTMSE cover

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A loan can be raised by more than one bank and/or financial institution jointly and/or separately up to Rs 5 crore subject to the ceiling amount of individual lender

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For loans up to Rs 5 lakh, the guarantee cover available for micro-enterprises is up to 85 per cent

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For loans between Rs 5 lakh and Rs 5 crore, the cover is up to Rs 75 per cent

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For women entrepreneurs/ SC-ST entrepreneurs/ MSEs situated in aspirational districts/ ZED-certified MSEs, etc., the guarantee cover available is up to 85 per cent for loans up to Rs 5 crore

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For MSEs based Northeast region, Jammu & Kashmir and Ladakh, the cover limit is up to 80 per cent for loans up to Rs 50 lakh and up to 75 per cent for loans between Rs 50 lakh and Rs 5 crore

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The scheme added microfinance institutions (MFIs) last year to the list of member lending institutions (MLIs)

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Recently, CGTMSE achieved the milestone of approving Cumulative Guarantee of INR 5 lakh Crore backing 76 lakh MSEs

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