Now get Rs 5 cr bank loan for business without collateral. Here's how to apply online

Oct 25, 2023 Girish Khurana

MSMEs registered on the Udyam portal can apply for up to Rs 5 crore loan without any pledging of any collateral with the bank under the government’s CGTMSE scheme

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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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The scheme provides guarantee cover to lenders in case borrowers fail to repay the loan. The guarantee cover for loans up to Rs 5 lakh raised by micro enterprises is up to 85 per cent of the loan amount

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For loans between Rs 5 lakh and Rs 5 crore, the cover is up to Rs 75 per cent. 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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Loans can be raised from microfinance institutions (MFIs), public and private banks, regional rural banks, foreign banks, small finance banks, urban cooperative banks, etc.

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The documents required for a CGTME loan application are passport-size photos, business project report, business registration certificate, CGTMSE loan coverage letter, and loan approval copy from the bank

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MSMEs can apply for a CGTMSE certificate on psbloansin59minutes.com. On completion of the application by eligible borrowers, digital approval letter is also issued through the portal

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MSMEs can submit the certificate and letter at the selected bank for loan under the CGTMSE scheme

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MSEs seeking guarantee cover under CGTMSE for collateral-free loan will have to provide their Udyam registration number. It has been mandatory since January 16, 2023

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