LoanMinistry of Micro, Small and Medium Enterprises (MoMSME)Verified 19 May 2026

Credit Guarantee Fund Trust for Micro and Small Enterprises

The Credit Guarantee Fund Trust for Micro and Small Enterprises provides credit guarantee support to MSMEs for loans up to ₹10 crore without requiring collateral. The scheme is designed to encourage financial institutions to provide more funding to small businesses.

Maximum amount
₹1.0Cr
Typical payout
₹20.0L
Processing time
3–8 weeks
Application window
Open year-round

Check if your startup qualifies for Credit Guarantee Fund Trust for Micro and Small Enterprises

Answer a few questions about your company and get a free, personalised eligibility report across all active government schemes — including CGTMSE.

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Eligibility criteria

Company type
Private Limited, LLP, One Person Company, Proprietorship, Partnership Firm
Stage
Pre-Revenue, Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States
All India (nationwide)
Sectors
manufacturing, services, retail, food_processing, textile, other
Prerequisites
  • Udyam (MSME) registration required

Documents required

1
Udyam Registration Certificate (URC)
Essential to prove MSME legal status.
Tip: Register on the Udyam portal to obtain this document.
2
Business PAN Card
Mandatory identifier for the enterprise entity.
Tip: Ensure the PAN card is in the name of the business.
3
Promoter KYC
Aadhaar card of all key business promoters. Part of promoter KYC.
Tip: Ensure all promoters have a valid Aadhaar card.
4
Promoter KYC
PAN card of all key business promoters. Part of promoter KYC.
Tip: Ensure all promoters have a PAN card.
5
Promoter KYC - Address Proof
Address proof of all key business promoters.
Tip: Common documents include utility bills or rental agreements.
6
Financial Statements
Audited or certified balance sheets, profit & loss statements, and tax returns for the past 2–3 financial years. Exempted for new startups.
Tip: Consult a CA to prepare and audit your financial statements.
7
Detailed Project Report (DPR)
A technical and financial viability report outlining business operations, market scope, and working capital requirements.
Tip: Hire a professional to draft a comprehensive DPR.
8
Bank Account Statements
Past 6 to 12 months of primary current account logs.
Tip: Obtain statements from your bank or download them from online banking.
9
GST Registration & Returns
Mandatory for businesses exceeding the statutory turnover threshold.
Tip: Ensure your GST registration is up-to-date.
10
Business Licenses
Depending on the trade, licenses such as Shop and Establishment Act license, drug license, FSSAI certificate, or factory license are required.
Tip: Check specific industry requirements for necessary licenses.
11
Partnership Deed / MoA & AoA
Required if registering as a partnership firm, LLP, or Private Limited company.
Tip: Ensure documents are legally verified.
12
Proforma Invoices
Quotations for machinery or raw materials if applying specifically for a term loan.
Tip: Gather official quotes from suppliers.
13
Category Certificates
SC/ST, Disability (PwD), or ZED certification to claim the 10% guarantee fee concession.
Tip: Apply through the relevant government portal if you qualify.

How to apply for CGTMSE

1
Review the CGTMSE Member Lending Institutions List to locate eligible banks and NFBCs.Open portal
2
Approach the bank branch with your DPR and mandatory files to apply for a business term loan or working capital facility.
3
The bank evaluates your proposal and, if satisfied, sanctions the loan and flags the profile for collateral-free guarantee inclusion.
4
The bank logs into the CGTMSE Lender Portal to upload borrower data and register the coverage.Open portal
5
Pay the standard Annual Guarantee Fee (AGF) to the lender, who remits it to the Trust.

Frequently asked questions

Who is eligible for CGTMSE?

CGTMSE is available to Private Limited, LLP, One Person Company, Proprietorship, Partnership Firm companies at the Pre-Revenue, Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across all Indian states (nationwide). Udyam (MSME) registration is required.

How much funding does CGTMSE provide?

CGTMSE provides up to ₹1.0Cr. Most applicants receive around ₹20.0L. This is a loan product — repayment is required.

How long does CGTMSE approval take?

The typical processing time from submission to disbursement is 3–8 weeks.

Is CGTMSE currently accepting applications?

Yes, CGTMSE is currently active and accepting applications. Application window: Open year-round.

Do I need Udyam registration for CGTMSE?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

Ready to apply for Credit Guarantee Fund Trust for Micro and Small Enterprises?

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Information is based on publicly available scheme guidelines. Last verified 19 May 2026. Always verify with official sources before applying.