Scheme / incentive
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE Coverage Refresh)
Provides collateral-free credit guarantee cover of up to Rs 5 crore (post-March 2023 enhancement) for credit facilities extended by Member Lending Institutions to eligible micro and small enterprises. Coverage ranges 75-85% of default.
Definition
Provides collateral-free credit guarantee cover of up to Rs 5 crore (post-March 2023 enhancement) for credit facilities extended by Member Lending Institutions to eligible micro and small enterprises. Coverage ranges 75-85% of default.
- SourceCGTMSE Operational Guidelines (revised 31 March 2023) — Chapter II (Coverage)cgtmse.in
Benefit
Type: credit_guarantee
Value: Cover up to Rs 5 cr per borrower; 75-85% guarantee depending on category.
Apply at: https://www.cgtmse.in/
Triggers (applicability predicates)
AGF (Annual Guarantee Fee) is in the range 0.37%-1.35% based on slab and category — significantly lower than commercial loan-pricing differentials.
sectors=anystates=anymsme=micro, small
Citations
- SourceCGTMSE Operational Guidelines (revised 31 March 2023) — Chapter II (Coverage)cgtmse.in