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CGTMSE Loan

CGTMSE LOAN

CGTMSE LOAN SERVICES

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is a scheme launched by the Government of India to facilitate credit to Micro and Small Enterprises (MSEs) without the need for collateral or third-party guarantees. This scheme aims to encourage banks and financial institutions to extend financial assistance to MSEs by providing a credit guarantee against loans defaulted by the borrowers.

The CGTMSE scheme plays a crucial role in supporting the growth and development of Micro and Small Enterprises by providing them with collateral-free credit access and mitigating the risks for lenders through credit guarantees.

How to Apply

Aged between 21 and 60 years

Salaried or a working professional

Having a job and a minimum of 3 months experience

Having a minimum of Rs. 25,000 net income per month.

Documentation Required

Photo Identity Proof

  • PAN Card
  • Passport
  • Voter ID
  • Aadhaar Card

Proof of Residence or Address Proof

  • Aadhaar Card
  • Passport
  • Voter's ID
  • Utility Bills
  • Driving Licence

Income Proof

  • Last 12 months’ statements for current and savings accounts
  • Balance sheet and Profit/Loss Account audited by a registered CA for the last two years
  • Last three years of ITRs - both company and individual

Others

  • PAN Card of the company/partnership firm
  • A certified copy of Partnership Deed agreement
  • GST Registration Certificate
  • Registration of Incorporation
  • Business address proof
  • Articles of Association and Memorandum of Association documents
  • Professional Practice Licence for Consultants, Doctors, etc.

CGTMSE Loan Balance Transfer

Currently, there isn't a specific concept of "balance transfer" associated with CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) loans in the traditional sense that is common with personal loans or credit cards. CGTMSE primarily guarantees loans provided by banks and financial institutions to Micro and Small Enterprises (MSEs), ensuring easier access to credit without the need for collateral or third-party guarantees.

Documents required for a balance transfer

  • Identity proof – Passport, Aadhar Card, Driving License, etc.
  • Address proof – Aadhaar Card, Passport, Voter’s ID, etc.
  • Bank statements - Last 12 months’ statements for current and savings accounts
  • Income proof - Balance sheet and Profit/Loss Account audited by a registered CA for the last two years, last three years of ITRs - both company and individual
  • Business proof - PAN Card, Partnership Deed agreement, GST Registration Certificate, Registration of Incorporation, Business address proof, AoA and MoA, Professional Practice Licence for Consultants, Doctors, etc.

Overdraft

An overdraft facility on your existing loan lets you withdraw extra funds up to a set limit whenever you need them. You only pay interest on the amount you use. Repayment is easy, as you can repay the borrowed amount anytime within the loan’s tenure. This facility is great for urgent financial needs since the money is pre-approved and available immediately. With an existing relationship with your lender, the paperwork is minimal. Timely repayments on your overdraft can also boost your credit score.

Here are some key points about the overdraft facility:

The interest rate for a personal loan is minimal. Furthermore, you only have to pay interest on the portion of the funds that you utilize, not the entire amount. This makes it easier to pay back your debt.

You can borrow immediately because the amount is pre-approved.

There are no restrictions on how you use the money from the loan, so you can use it for any purpose —personal, professional, planned, or unanticipated needs.

Because this facility makes borrowing and repaying easier, you can use it to establish a positive credit history and improve your credit score.

Benefits of Choosing Our CGTMSE Loans

Competitive
Rates

Enjoy low-interest rates starting from 4.99% APR, based on your creditworthiness.

Flexible Monthly Payments

Manage your budget better with predictable payments and no hidden fees.

Quick and Easy Process

Fast approval process with funds available as soon as the next business day.

No Collateral Required

Get the funds you need without risking your assets.

Application Process

Step-1

When you connect with us, we take the time to understand your financial requirements.

Step-2

We help you compare the best CGTMSE loan offers online and choose the product that suits your needs.

Step-3

Once you choose a product, we help you apply for the loan. All you need to do is to keep your documentation in order.

Step-4

Next, you need to apply online with the chosen bank or NBFC.

Step-5

Once you submit your application, the lender takes some time to process it and verify your documentation.

Step-6

Finally, you receive the loan amount in your account.

Feel free to use our Equipment Finance Calculator

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FREQUENTLY ASKED QUESTIONS

Find Answers to Common Questions

Micro and Small Enterprises (MSEs) engaged in manufacturing or service activities are eligible for CGTMSE support. These enterprises must comply with the eligibility criteria prescribed under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006.

 

  • Collateral-Free Loans: MSEs can obtain loans without providing collateral or third-party guarantees.

  • Credit Guarantee Cover: CGTMSE provides a credit guarantee cover to lenders, encouraging them to extend credit to MSEs that may be perceived as risky otherwise.

  • Lower Interest Rates: Since the risk to the lender is reduced due to the credit guarantee, MSEs may benefit from lower interest rates on their loans.

  • Promotion of MSEs: Facilitates growth, expansion, and modernization of Micro and Small Enterprises, contributing to economic development and employment generation.

CGTMSE covers term loans and working capital loans extended by eligible lenders (banks and financial institutions) to MSEs. These loans can be used for various business purposes including working capital requirements, purchase of machinery, equipment, and infrastructure, as well as for business expansion and diversification.

  • Lender Application: Lenders apply to CGTMSE for a guarantee cover on loans disbursed to MSEs.

  • Risk Coverage: CGTMSE provides a guarantee cover ranging from 75% to 85% of the sanctioned loan amount in case of default by the borrower, depending on the category of MSE.

  • Loan Repayment: MSEs repay the loan to the lender according to the agreed-upon terms and conditions, including interest and principal payments.

The maximum loan amount under CGTMSE can range from Rs. 10 lakh to Rs. 2 crore, depending on the borrower's eligibility and project requirements. The actual loan amount sanctioned is determined by the lending institution based on its assessment of the borrower's creditworthiness and repayment capacity.

No, MSEs cannot apply directly to CGTMSE for a loan. The scheme operates through eligible lenders (banks and financial institutions) who apply to CGTMSE for a guarantee cover on loans disbursed to MSEs.