SCHEME SPONSOR: Ministry of MSME
TARGET GROUP: Member Lending Institutions
MODE OF ASSISTANCE: Funding
About the Scheme:
In order to accelerate the flow of institutional credit to Micro & Small Enterprises (MSEs),
the Ministry of Micro, Small & Medium Enterprises (MSME), the Government of India, and
the Small Industries Development Bank of India (SIDBI) together established the Credit
Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The Credit Guarantee
Scheme (CGS) was introduced to fortify the credit delivery system, ease the flow of credit to
the MSE sector, and provide impoverished, unserved, and underserved populations with
access to financing by making traditional lenders’ funds available to upcoming business
owners. Credit facilities up to Rs 200 lakh per eligible borrower, both fund and non-fund-
based (Letters of Credit, Bank Guarantee, etc.), are covered by the guarantee scheme as long
as they are extended based only on the viability of the project and do not include collateral
security or third-party guarantees from qualifying lending institutions.
Assistance Pattern:
The initiative covers credit facilities for new or existing micro and small enterprises,
including term loans and working capital up to Rs.100 lakh per borrowing unit. No collateral
or third-party guarantees are required. The guarantee plan may cover rehabilitation assistance
provided by the lender for units that become sick due to circumstances beyond management’s
control. The policy covers loan facilities up to Rs.50 lakh, but guarantee insurance is limited
to this amount.
Requirements:
- Latest Annual Report
- Undertaking duly stamped and signed Undertaking format
- Compliance to conditions of MLI registration as per applicable guidance.
Apply on: https://www.cgtmse.in/
More Information on:
https://dcmsme.gov.in/CLCS_TUS_Scheme/Credit_Guarantee_Scheme/Scheme_Gui
delines.aspx