Overview
The Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) provides collateral-free credit guarantee to micro and small enterprises. It enables banks to lend without requiring collateral security.
Key Features
- Credit guarantee coverage: Up to 85% of loan amount
- Maximum guarantee: ₹5 Crore
- No collateral security required
- Covers both fund and non-fund based facilities
Guarantee Coverage
| Loan Amount | Guarantee Coverage |
|---|
| Up to ₹5 Lakh | 85% |
| Above ₹5 Lakh | 75% |
Eligible Enterprises
- Manufacturing enterprises with investment up to ₹10 Crore
- Service enterprises with investment up to ₹5 Crore
- Both new and existing enterprises
- Retail trade enterprises with turnover up to ₹50 Crore
Benefits
- Easier access to credit without collateral
- Reduced documentation requirements
- Faster loan processing by banks
- Encourages entrepreneurship and job creation
