CGTMSE

CGTMSE (Credit Guarantee fund Trust for Micro and Small Enterprises) is setup by Government of India, & SIDBI in Aug’2000 to make collateral free credit facilities available to MSEs(Micro & Small Enterprises). 

Eligibility:

• Under CGTMSE, guarantee cover is provided by the trust for the credit facilities to an extent of Rs 500 lakh that have been sanctioned without any collateral security and/or third party guarantees to all new and existing Micro and Small Enterprises (both Manufacturing as well as services). 
• CGTMSE has recently modified the scheme by introducing Hybrid Security product wherein loans sanctioned to MSE units with partial collateral coverage can be covered under the credit guarantee scheme (CGS) of CGTMSE i.e., A portion of loan which is not covered by collateral security (Max. of Rs 5.00 Crore) sanctioned to MSE units can be covered under CGTMSE. 
• ITPAN & Udyam Registration Number/ Udyam Assist Certificate is compulsory for obtaining coverage under CGTMSE. 
• Loans sanctioned under Agriculture segment and SHGs are also not eligible to cover under CGTMSE. 
• The guarantee Coverage of the loan and its fee structure as per the extant guidelines of CGTMSE which is subject to change from time to time. Bank Changes an additional 10% of the fees over and above the fee charged by CGTMSE from the borrower. As on date the risk premium of the Bank is 30% of the fees charged by CGTMSE . 
• For more information please refer to www.cgtmse.in