Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)
Banks and financial institutions are provided credit guarantee by CGTMSE(Trust) under this scheme so that they can in turn lend collateral free credit to MSEs.
Objectives
To encourage first generation enterpreneurs to venture into self-employment opportunities by facilitating credit guarantee support for collateral free/ third-party guarantee-free loan to the Micro and Small enterprises (MSEs), especially in the absence of collateral.
Key Benefits
Credit guarantee for loans up to Rs. 2 crores, without collateral and third-party guarantee.
Guarantee coverage ranges from 85% (Micro Enterprise up to Rs 5 lakhs) to 75% (others).
50% coverage is for retail activity.
Scheme applicable for
Existing Entrepreneurs and Aspiring Entrepreneurs.