Rs 5 crore business loan under CGTMSE: Explained in 10 easy steps

Rs 5 crore business loan under CGTMSE: Explained in 10 easy steps

The government’s Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE) provides credit guarantees to banks and other lenders for loans up to Rs 5 crore

The government’s Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE) provides credit guarantees to banks and other lenders for loans up to Rs 5 crore

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

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

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

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

For loans up to Rs 5 lakh, the guarantee cover available for micro enterprises is up to 85%, for loans between Rs 5 lakh and Rs 5 crore, the cover is up to 75%

For loans up to Rs 5 lakh, the guarantee cover available for micro enterprises is up to 85%, for loans between Rs 5 lakh and Rs 5 crore, the cover is up to 75%

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

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

For MSEs based Northeast region, J&K and Ladakh, the cover limit is up to 80% for loans up to Rs 50 lakh and up to 75% for loans between Rs 50 lakh and Rs 5 crore

For MSEs based Northeast region, J&K and Ladakh, the cover limit is up to 80% for loans up to Rs 50 lakh and up to 75% for loans between Rs 50 lakh and Rs 5 crore

A borrower can raise loan from a microfinance lender also and seek CGTMSE cover other than banks, regional rural banks, foreign banks, small finance banks, urban cooperative banks

A borrower can raise loan from a microfinance lender also and seek CGTMSE cover other than banks, regional rural banks, foreign banks, small finance banks, urban cooperative banks

MSEs seeking guarantee cover under CGTMSE will have to provide their Udyam registration number

MSEs seeking guarantee cover under CGTMSE will have to provide their Udyam registration number

Documents needed are loan application, passport-size photos, business project report, business registration certificate, CGTMSE loan coverage letter, and loan approval copy from the bank

Documents needed are loan application, passport-size photos, business project report, business registration certificate, CGTMSE loan coverage letter, and loan approval copy from the bank

Images: Pexels

Images: Pexels