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CGMSTE Loan

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About CGTMSE Loan

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a government-backed scheme that empowers small and micro-businesses to access collateral-free credit. By providing a credit guarantee to banks and financial institutions, CGTMSE reduces the risk for lenders, allowing them to extend loans even to businesses without any security or third-party guarantees.

CGTMSE loans are ideal for new entrepreneurs and growing businesses that lack tangible assets but have the potential for expansion. With simplified procedures, lower default risk for lenders, and broad sector coverage, this scheme acts as a financial bridge for small-scale businesses aiming to invest in infrastructure, machinery, or working capital.

  • Collateral-Free Loan Scheme
  • Government of India & SIDBI
  • credit guarantee up to ₹2 crore
  • startups, MSMEs, and first-time borrowers
  • third-party guarantee or security
  • financial inclusion and entrepreneurship
  • business expansion or working capital
  • build creditworthiness over time

Top Benefits of Taking a CGTMSE Loan

Business loans offer more than just capital—they provide the support you need to take your business to the next level

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No Collateral Required

Access business loans without pledging any property or asset as security.


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Credit Guarantee up to ₹2 Cr

Backed by CGTMSE, covering up to 75-85% of the defaulted amount.


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Boosts Business Growth

Ideal for purchasing equipment, expanding operations, or managing working capital.

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Encourages First-Time Borrowers

Perfect for startups and small businesses with limited credit history.


CGTMSE Loan Eligibility

Micro and Small Enterprises (MSEs), including startups, engaged in manufacturing or service activities, are eligible for credit facilities under the CGTMSE scheme without the need for collateral or third-party guarantees.

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Business Type

Only Micro and Small Enterprises (MSEs) including startups are eligible.

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Loan Amount

Credit facilities up to ₹2 Crore per eligible borrower can be covered.

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New & Existing Units

Both new and existing enterprises are eligible for coverage under CGTMSE.

Frequently Asked Questions

What is a CGTMSE Loan?

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is a government initiative that allows Micro and Small Enterprises (MSEs) to avail business loans without any collateral. Under this scheme, the government provides a guarantee to lenders like Rupee Bridge, making it easier for businesses to access unsecured credit.

The CGTMSE scheme supports loans up to ₹2 crore. Rupee Bridge can help you secure funding under this limit based on your business requirement and profile.

Yes. Startups, especially those registered under the Startup India initiative, can apply if they meet the eligibility criteria and have a viable business plan.

The scheme covers a wide range of sectors including:

  • Manufacturing
  • Trading
  • Services
  • Retail
  • Agri-allied businesses (like dairy, poultry)

In case of default, the lender files a claim with the CGTMSE trust. Up to 75% of the loan amount is covered by the trust (up to 85% for certain categories like women entrepreneurs or North Eastern region units). However, it still affects your credit score, and the remaining liability may be pursued by the lender.

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