government_bodyTerm Loan (Capex / Expansion)All MSME Borrowers🛡️CGTMSE CoveredVerified: 2026-09-29

CGTMSE Collateral-Free Credit Guarantee Facility (Up to ₹5 Crore)

Primary Lending Institution:Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Collateral-free credit guarantee enabling bank loans up to ₹5 Crore for micro and small enterprises.

Interest Rate8.75% – 11.25% (Standard bank MSME lending rate)Linked to EBLR / MCLR / Risk

Loan Amount QuantumUp to ₹5 Crore (₹500 Lakh)Based on turnover & project cost

Repayment TenureUp to 7 yearsWith moratorium where applicable

Collateral SecurityStrictly zero third-party collateral or mortgage; primary hypothecation of funded business assets only

What's Missing: Crucial Fine-Print & Exclusion Gaps

Borrower must pay Annual Guarantee Fee (AGF) to CGTMSE. Retail trade, educational institutions, agriculture, and SHGs are subject to specific sub-limits.

Note: Eligo publishes these regulatory and commercial exclusions directly from bank product guidelines and CGTMSE rules to protect MSME applicants from unexpected fee debits or loan rejection surprises.

What is CGTMSE Collateral-Free Credit Guarantee Facility (Up to ₹5 Crore)?

National credit guarantee mechanism jointly set up by Ministry of MSME and SIDBI enabling banks to sanction collateral-free business loans up to ₹5 Crore to new and existing micro and small enterprises.

Key Benefits & Features

Up to ₹5 Crore bank credit without mortgaging land, building, or residential property; guarantee coverage up to 85% for women and micro units; accepted by all Member Lending Institutions (MLIs).

Government Subsidy & Credit Guarantee Coverage

75% to 85% sovereign guarantee coverage by CGTMSE Trust

Enterprise Eligibility Criteria

New and existing Micro and Small Enterprises (MSEs) engaged in manufacturing or service activities with valid Udyam Registration.

Business VintageNew & Existing units eligible

Min. Annual TurnoverTurnover proportionate

Processing FeeAnnual Guarantee Fee (AGF) 0.37% to 1.35% depending on slab

Prepayment TermsZero prepayment penalty on floating rate loans

How to Apply (3 Verified Paths)

💼Path 1: Current Account Portal

Request CGTMSE-backed credit structuring from existing lending bank.

🌐Path 2: Official FinTech / Govt Portal

Apply at psbloansin59minutes.com or commercial bank MSME portal selecting collateral-free guarantee.

🏢Path 3: SME Banking Center Walk-In

Approach MSME desk of any public/private bank or participating NBFC.

Eligo does not collect business loan applications or financial data. Apply directly on the verified official domain:

Visit Official Portal↗

Documents Required Checklist

Udyam Registration Certificate, DPR / Business plan, 2 years ITR and financial statements (for existing units), GST returns, KYC documents.

Frequently Asked Questions

What is the maximum loan limit covered under CGTMSE?

The guarantee ceiling was enhanced to ₹5.00 Crore (₹500 Lakh) per MSE borrower.

What is the guarantee coverage percentage?

CGTMSE covers 85% for micro-enterprises up to ₹5 Lakh, 85% for women-owned units and units in NER/Aspirational districts, and 75% for general MSE loans.

Does the borrower have to provide any property collateral?

No. The core objective of CGTMSE is that banks cannot demand third-party collateral or real estate mortgage for covered facilities.

What is the Annual Guarantee Fee (AGF)?

The AGF ranges from 0.37% to 1.35% per annum based on loan slab and borrower risk category.