Central scheme
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
SIDBI + Ministry of MSME
- Benefit
- Credit guarantee on collateral-free lending to micro and small enterprises. Confirmed cover (effective for guarantees approved on/after 1 April 2025): Micro enterprises 85% up to ₹5 lakh, 75% from ₹5 lakh–₹10cr; a flat 90% for women entrepreneurs and MSEs promoted by Agniveers; a flat 85% for SC/ST, PwD, aspirational-district, ZED-certified and transgender-owned units; 80% flat for NER/J&K/Ladakh; 75% flat for all other borrowers. A further +5% applies in RBI-identified credit-deficient districts.
- Ceiling
- ₹10 crore (raised from ₹5cr, effective for guarantees approved on/after 18 March 2025).
- Eligibility
- Micro and small enterprises in manufacturing and services; retail trade within limits. Not medium/large enterprises, not consumption loans.
- Route
- Through the lending bank (Member Lending Institution).
Watch out for
Annual Guarantee Fee scales from 0.37% to 1.20% depending on loan size, with concessions for women, SC/ST, PwD and other categories. 18-month lock-in applies. Source: CGTMSE Scheme Document CGS-I (updated 1 April 2025) and Circular No. 250/2024-25, cgtmse.in — confirmed directly from the primary documents.
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