Understanding the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a collaborative initiative between the Ministry of Micro, Small and Medium Enterprises (MSME) and the Small Industries Development Bank of India (SIDBI). This trust was established to facilitate the Credit Guarantee Scheme for Micro and Small Enterprises (MSEs), with a focus on providing financial assistance to smaller businesses in a way that reduces their collateral requirements.

What is CGTMSE?

CGTMSE operates with a corpus contributed by both the Government of India and SIDBI. Under this scheme, up to 75% of the loan amount provided by banks is guaranteed by the trust. This significant backing allows MSEs to secure collateral-free loans of up to ₹100 lakh. To benefit from this scheme, enterprises are required to pay a guarantee fee to their lending bank.

Who Can Apply?

Both existing and new micro and small enterprises are eligible to apply for assistance under CGTMSE. This scheme is designed to support a wide range of businesses, helping them to access necessary capital without the burden of substantial collateral.

How to Apply?

To apply for a loan under this scheme, eligible enterprises should approach banks or financial institutions that participate in the CGTMSE scheme. Additionally, some Regional Rural Banks are also part of this initiative. For more detailed information and to begin the application process, you can visit the official website here.

Contact Information

For further assistance and queries regarding the CGTMSE, you can reach out to:

• CEO, CGT SME
  Phone: 022-61437805
  Email: pradeepm@cgtmse.in
• Additional Director, Office of DC, MSME
  Phone: 011-23062241
  Email: arun_kumar@nic.in

Nature of Assistance

The CGTMSE scheme offers crucial support by ensuring that a substantial portion of the loan amount is guaranteed. This reduces the risk for lenders and encourages them to provide financing to small enterprises that might otherwise struggle to secure loans. The assistance helps foster the growth of micro and small businesses by providing them with the financial resources they need to expand and thrive.

By leveraging the CGTMSE scheme, MSEs can gain access to necessary funding without the typical constraints of collateral requirements, promoting a more inclusive and supportive financial environment for small businesses.