Collateral-Free MSME Loans
Up to ₹10 Crore collateral-free working capital & term loans for Micro & Small Enterprises — backed by GoI & SIDBI guarantee. 75–85% coverage. No property pledge required. Facilitated by CapitalBox.
What is CGTMSE?
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a trust jointly set up by the Ministry of Micro, Small & Medium Enterprises (MoMSME), Government of India and the Small Industries Development Bank of India (SIDBI) in the year 2000.
The scheme provides guarantee cover to banks, NBFCs and financial institutions for collateral-free loans extended to Micro and Small Enterprises. The maximum loan covered under CGTMSE is ₹10 Crore — enabling small businesses to get formal credit without pledging property, gold or any other asset.
The Annual Guarantee Fee (AGF) was revised downward effective April 1, 2025 per CGTMSE Circular No. 251/2024-25 — making borrowing more affordable. DPIIT-recognised startups can access cover up to ₹20 Crore under the linked CGSS scheme.
Guarantee Coverage Slabs Under CGTMSE
CGTMSE provides differential guarantee coverage based on borrower category. The higher the priority category, the higher the coverage percentage — protecting lenders and enabling easier loan approval.
- Highest guarantee coverage under CGTMSE
- For micro enterprises with smallest loan needs
- AGF as low as 0.37% per annum
- No collateral or third-party guarantee
- Manufacturing and service units both covered
- Women entrepreneurs get enhanced 80% cover
- SC/ST borrowers & North East Region covered
- ZED certified units also get 80% coverage
- Reduced AGF fee for priority borrowers
- Aspirational districts get additional concessions
- Standard guarantee for all eligible MSEs
- Manufacturing + service + trading sectors
- Term loans and working capital both covered
- Hybrid Security product available above ₹5 Cr
- CGSS covers DPIIT startups up to ₹20 Crore
CGTMSE Loan EMI Calculator
Calculate your monthly EMI, total interest payable and Annual Guarantee Fee (AGF) for CGTMSE scheme loans. Adjust loan amount, tenure and interest rate to plan your repayment.
🧮 CGTMSE Loan & EMI Calculator
Estimate monthly EMI, total cost and AGF for your MSME loan under CGTMSE guarantee scheme.
What CGTMSE Offers MSME Borrowers
A powerful credit guarantee framework that bridges the gap between MSEs needing funds and lenders hesitant without collateral.
Zero Collateral Required
No property, gold, land or third-party guarantee required. CGTMSE's guarantee acts as the security for the lending institution.
Up to ₹10 Crore Loan
Maximum loan coverage raised to ₹10 Crore for MSEs — significantly higher than earlier limits of ₹2 Crore or ₹5 Crore.
75–85% Guarantee Cover
CGTMSE covers 75–85% of the defaulted amount, giving lenders confidence to approve loans without collateral requirement.
All MSE Sectors Covered
Manufacturing, service, and now trading enterprises — all Micro and Small Enterprises under MSMED Act definition are eligible.
Term Loan + Working Capital
Both fund-based (term loans, overdraft, cash credit) and non-fund-based (guarantees, LCs) facilities are covered under CGTMSE.
Reduced AGF Post April 2025
Annual Guarantee Fee was revised downward from April 1, 2025 — starting as low as 0.37% p.a. for small ticket loans, reducing effective cost.
Who Can Apply Under CGTMSE?
CGTMSE covers new and existing Micro and Small Enterprises. The borrower must approach a Member Lending Institution (MLI) registered with CGTMSE.
Micro & Small Enterprises
New and existing MSEs as defined under the MSMED Act — both manufacturing and service sector enterprises are eligible.
Trading Enterprises (Now Included)
Retail and wholesale trade enterprises are now included under CGTMSE after recent scheme revisions — aligned with manufacturing and services.
Women Entrepreneurs
Women-owned or operated MSEs get enhanced 80% guarantee coverage and reduced Annual Guarantee Fee under special category provisions.
SC / ST Borrowers & NER
SC/ST entrepreneurs and enterprises in the North East Region get 80% coverage and additional fee concessions under priority category.
DPIIT-Recognised Startups
Startups recognised by DPIIT can access guarantee cover up to ₹20 Crore under the linked Credit Guarantee Scheme for Startups (CGSS).
Borrower Age 18+
The promoter/proprietor must be over 18 years of age. Udyam Registration Number is mandatory for all borrowers to obtain guarantee cover.
How To Apply Through CapitalBox
CapitalBox simplifies the CGTMSE loan application — from Udyam registration check to lender coordination and disbursement support.
Pay Activation Fee
Pay ₹1,100 to initiate CGTMSE loan facilitation with CapitalBox team.
Profile & Udyam Check
We verify Udyam registration, business financials, KYC and CGTMSE eligibility.
MLI Bank Matching
Matched to a CGTMSE Member Lending Institution — bank, NBFC or FI.
Loan Sanction
Lender processes application, approves without collateral under CGTMSE cover.
Loan Disbursed
Amount credited to business account. Success fee of ₹30,000 applies on disbursement.
Documents Required for CGTMSE Loan
CGTMSE loan applications require standard business and KYC documentation through the Member Lending Institution.
Identity & KYC Mandatory
- 📋Aadhaar Card — identity & address proof
- 📋PAN Card — mandatory for loans above ₹5 Lakh
- 📋Passport / Voter ID / Driving License
- 📋Passport-size photographs of promoters
Business Registration Mandatory
- 🏭Udyam Registration Certificate (Mandatory)
- 🏭GST Registration Certificate
- 🏭Partnership Deed / Certificate of Incorporation
- 🏭MoA / AoA (for companies)
Financial Documents Required
- 📊Detailed Business Plan / Project Report (DPR)
- 📊Last 2–3 years Balance Sheet & P&L (existing biz)
- 📊Income Tax Returns of business & promoters
- 📊Bank statements of last 12 months
Loan Application Required
- 🏦Loan application form of the MLI / bank
- 🏦Active bank account in business name
- 🏦Financial projections for new businesses
- 🏦Any existing loan details / CIBIL report
Transparent Pricing For Facilitation
Two-step consultancy fee — pay to start, pay success fee only when your CGTMSE loan is disbursed to your account.
Service Activation Fee
Consultancy fee to initiate your CGTMSE loan facilitation process. Not a government fee — this is CapitalBox's service charge.
- Eligibility check for CGTMSE scheme
- Udyam & document readiness review
- GST-invoiced & fully compliant
Success Fee
Payable only when your CGTMSE loan is approved and disbursed to your bank account. Zero charge if not disbursed.
- MLI/bank coordination & sanction support
- End-to-end documentation management
- No charge if application is not approved
Frequently Asked Questions
Common questions about CGTMSE scheme and how CapitalBox helps MSEs get collateral-free loans.
Important Disclaimer — Please Read Carefully
- 🔴CapitalBox is NOT a Government Body, Bank or NBFC. We are a private business financing consultancy and facilitation platform. We are not affiliated with or endorsed by CGTMSE, MoMSME, SIDBI or the Government of India.
- 🔴The Service Activation Fee (₹1,100) and Success Fee (₹30,000) are CapitalBox's private consultancy charges. These are not government fees and are separate from the CGTMSE scheme itself.
- 🟡CGTMSE loans can be applied for directly — free of government charges — by approaching any Member Lending Institution (bank, NBFC, FI) registered with CGTMSE. You can also apply via jansamarth.in or psbloansin59minutes.com. CapitalBox is an optional facilitation service.
- 🟡Final loan approval, guarantee coverage and disbursement are determined by the respective MLI (Bank/NBFC/FI) and CGTMSE — not by CapitalBox. Loan approval is not guaranteed by paying the activation fee.
- 🟡CGTMSE does not directly give loans or subsidies. It only provides guarantee cover to lenders. CGTMSE has no agents or agencies — any entity claiming to arrange loans on CGTMSE's behalf directly is fraudulent.
- ⚪EMI calculator results on this page are estimates only and may differ from actual bank calculations. AGF rates are indicative — verify latest rates at cgtmse.in. Information is for educational purposes only.
Ready To Apply Under CGTMSE?
Let CapitalBox guide you through Udyam registration, MLI matching, documentation and collateral-free loan disbursement — fully online.
Collateral-Free MSME Loans
Up to ₹10 Crore collateral-free working capital & term loans for Micro & Small Enterprises — backed by GoI & SIDBI guarantee. 75–85% coverage. No property pledge required. Facilitated by CapitalBox.
What is CGTMSE?
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a trust jointly set up by the Ministry of Micro, Small & Medium Enterprises (MoMSME), Government of India and the Small Industries Development Bank of India (SIDBI) in the year 2000.
The scheme provides guarantee cover to banks, NBFCs and financial institutions for collateral-free loans extended to Micro and Small Enterprises. The maximum loan covered under CGTMSE is ₹10 Crore — enabling small businesses to get formal credit without pledging property, gold or any other asset.
The Annual Guarantee Fee (AGF) was revised downward effective April 1, 2025 per CGTMSE Circular No. 251/2024-25 — making borrowing more affordable. DPIIT-recognised startups can access cover up to ₹20 Crore under the linked CGSS scheme.
Guarantee Coverage Slabs Under CGTMSE
CGTMSE provides differential guarantee coverage based on borrower category. The higher the priority category, the higher the coverage percentage — protecting lenders and enabling easier loan approval.
- Highest guarantee coverage under CGTMSE
- For micro enterprises with smallest loan needs
- AGF as low as 0.37% per annum
- No collateral or third-party guarantee
- Manufacturing and service units both covered
- Women entrepreneurs get enhanced 80% cover
- SC/ST borrowers & North East Region covered
- ZED certified units also get 80% coverage
- Reduced AGF fee for priority borrowers
- Aspirational districts get additional concessions
- Standard guarantee for all eligible MSEs
- Manufacturing + service + trading sectors
- Term loans and working capital both covered
- Hybrid Security product available above ₹5 Cr
- CGSS covers DPIIT startups up to ₹20 Crore
CGTMSE Loan EMI Calculator
Calculate your monthly EMI, total interest payable and Annual Guarantee Fee (AGF) for CGTMSE scheme loans. Adjust loan amount, tenure and interest rate to plan your repayment.
🧮 CGTMSE Loan & EMI Calculator
Estimate monthly EMI, total cost and AGF for your MSME loan under CGTMSE guarantee scheme.
What CGTMSE Offers MSME Borrowers
A powerful credit guarantee framework that bridges the gap between MSEs needing funds and lenders hesitant without collateral.
Zero Collateral Required
No property, gold, land or third-party guarantee required. CGTMSE's guarantee acts as the security for the lending institution.
Up to ₹10 Crore Loan
Maximum loan coverage raised to ₹10 Crore for MSEs — significantly higher than earlier limits of ₹2 Crore or ₹5 Crore.
75–85% Guarantee Cover
CGTMSE covers 75–85% of the defaulted amount, giving lenders confidence to approve loans without collateral requirement.
All MSE Sectors Covered
Manufacturing, service, and now trading enterprises — all Micro and Small Enterprises under MSMED Act definition are eligible.
Term Loan + Working Capital
Both fund-based (term loans, overdraft, cash credit) and non-fund-based (guarantees, LCs) facilities are covered under CGTMSE.
Reduced AGF Post April 2025
Annual Guarantee Fee was revised downward from April 1, 2025 — starting as low as 0.37% p.a. for small ticket loans, reducing effective cost.
Who Can Apply Under CGTMSE?
CGTMSE covers new and existing Micro and Small Enterprises. The borrower must approach a Member Lending Institution (MLI) registered with CGTMSE.
Micro & Small Enterprises
New and existing MSEs as defined under the MSMED Act — both manufacturing and service sector enterprises are eligible.
Trading Enterprises (Now Included)
Retail and wholesale trade enterprises are now included under CGTMSE after recent scheme revisions — aligned with manufacturing and services.
Women Entrepreneurs
Women-owned or operated MSEs get enhanced 80% guarantee coverage and reduced Annual Guarantee Fee under special category provisions.
SC / ST Borrowers & NER
SC/ST entrepreneurs and enterprises in the North East Region get 80% coverage and additional fee concessions under priority category.
DPIIT-Recognised Startups
Startups recognised by DPIIT can access guarantee cover up to ₹20 Crore under the linked Credit Guarantee Scheme for Startups (CGSS).
Borrower Age 18+
The promoter/proprietor must be over 18 years of age. Udyam Registration Number is mandatory for all borrowers to obtain guarantee cover.
How To Apply Through CapitalBox
CapitalBox simplifies the CGTMSE loan application — from Udyam registration check to lender coordination and disbursement support.
Pay Activation Fee
Pay ₹1,100 to initiate CGTMSE loan facilitation with CapitalBox team.
Profile & Udyam Check
We verify Udyam registration, business financials, KYC and CGTMSE eligibility.
MLI Bank Matching
Matched to a CGTMSE Member Lending Institution — bank, NBFC or FI.
Loan Sanction
Lender processes application, approves without collateral under CGTMSE cover.
Loan Disbursed
Amount credited to business account. Success fee of ₹30,000 applies on disbursement.
Documents Required for CGTMSE Loan
CGTMSE loan applications require standard business and KYC documentation through the Member Lending Institution.
Identity & KYC Mandatory
- 📋Aadhaar Card — identity & address proof
- 📋PAN Card — mandatory for loans above ₹5 Lakh
- 📋Passport / Voter ID / Driving License
- 📋Passport-size photographs of promoters
Business Registration Mandatory
- 🏭Udyam Registration Certificate (Mandatory)
- 🏭GST Registration Certificate
- 🏭Partnership Deed / Certificate of Incorporation
- 🏭MoA / AoA (for companies)
Financial Documents Required
- 📊Detailed Business Plan / Project Report (DPR)
- 📊Last 2–3 years Balance Sheet & P&L (existing biz)
- 📊Income Tax Returns of business & promoters
- 📊Bank statements of last 12 months
Loan Application Required
- 🏦Loan application form of the MLI / bank
- 🏦Active bank account in business name
- 🏦Financial projections for new businesses
- 🏦Any existing loan details / CIBIL report
Transparent Pricing For Facilitation
Two-step consultancy fee — pay to start, pay success fee only when your CGTMSE loan is disbursed to your account.
Service Activation Fee
Consultancy fee to initiate your CGTMSE loan facilitation process. Not a government fee — this is CapitalBox's service charge.
- Eligibility check for CGTMSE scheme
- Udyam & document readiness review
- GST-invoiced & fully compliant
Success Fee
Payable only when your CGTMSE loan is approved and disbursed to your bank account. Zero charge if not disbursed.
- MLI/bank coordination & sanction support
- End-to-end documentation management
- No charge if application is not approved
Frequently Asked Questions
Common questions about CGTMSE scheme and how CapitalBox helps MSEs get collateral-free loans.
Important Disclaimer — Please Read Carefully
- 🔴CapitalBox is NOT a Government Body, Bank or NBFC. We are a private business financing consultancy and facilitation platform. We are not affiliated with or endorsed by CGTMSE, MoMSME, SIDBI or the Government of India.
- 🔴The Service Activation Fee (₹1,100) and Success Fee (₹30,000) are CapitalBox's private consultancy charges. These are not government fees and are separate from the CGTMSE scheme itself.
- 🟡CGTMSE loans can be applied for directly — free of government charges — by approaching any Member Lending Institution (bank, NBFC, FI) registered with CGTMSE. You can also apply via jansamarth.in or psbloansin59minutes.com. CapitalBox is an optional facilitation service.
- 🟡Final loan approval, guarantee coverage and disbursement are determined by the respective MLI (Bank/NBFC/FI) and CGTMSE — not by CapitalBox. Loan approval is not guaranteed by paying the activation fee.
- 🟡CGTMSE does not directly give loans or subsidies. It only provides guarantee cover to lenders. CGTMSE has no agents or agencies — any entity claiming to arrange loans on CGTMSE's behalf directly is fraudulent.
- ⚪EMI calculator results on this page are estimates only and may differ from actual bank calculations. AGF rates are indicative — verify latest rates at cgtmse.in. Information is for educational purposes only.
Ready To Apply Under CGTMSE?
Let CapitalBox guide you through Udyam registration, MLI matching, documentation and collateral-free loan disbursement — fully online.