Ministry of MSME · SIDBI
CGTMSECredit Guarantee Fund Trust for Micro & Small Enterprises
Get a bank loan without pledging your house or land — the government guarantees it for you.
Micro & small manufacturers and service units that need a bigger term loan or working capital but don't have property to mortgage.
What you get
- Collateral-free term loan and working capital
- Higher guarantee cover for women entrepreneurs and micro units
- Works with your existing bank — no separate government application
- Small annual guarantee fee, usually built into the loan
Who can apply
- New or existing micro & small enterprise (manufacturing or service)
- Retail trade and educational institutions also covered
- Valid Udyam registration
- Loan sanctioned by a CGTMSE member lending institution
Step-by-step process
- 1Business & financial review
- 2CMA data / project report prepared
- 3Loan proposal to bank with CGTMSE cover
- 4Bank appraisal & sanction
- 5Guarantee approved online by the bank
- 6Disbursement
Documents needed
Calculate
Business Loan EMI Calculator
Monthly EMI, total interest and year-by-year repayment.
MSME loans usually range from 8.5% to 14% depending on bank and profile.
for 84 months
With PMEGP / PMFME subsidy, the subsidy amount is adjusted against this loan — your real repayment is lower.
Also consider
Schemes that work well with this one
Start a new manufacturing or service unit and get up to 35% of the project cost as a government subsidy.
- ₹50 L
- Max project · manufacturing
- ₹20 L
- Max project · service
- 5–10%
- Your own contribution
Collateral-free loans up to ₹20 lakh for shops, traders, small manufacturers and service businesses.
- ₹50 K
- Shishu
- ₹5 L
- Kishore
- ₹10–20 L
- Tarun / Tarun Plus
For pickle, papad, masala, bakery, snacks, flour, oil and dairy units — 35% subsidy up to ₹10 lakh.
- 35%
- Credit-linked subsidy
- 10%
- Your contribution
- ₹40 K
- Seed capital per SHG member
Scheme details are summarised from official guidelines and may change. Final eligibility, loan amount and subsidy are decided by the bank and the implementing agency.