Reviewed by the CreditCares advisory desk · 13 years in business finance · Last updated 10 July 2026
CGTMSE — MSME credit, without collateral.
The Credit Guarantee Fund Trust for Micro & Small Enterprises covers the lender's risk on your loan — so banks can sanction up to ₹5 Crore without property or third-party guarantee.
The guarantee that replaces your property
Under CGTMSE, a member bank or NBFC lends to your enterprise and the Trust guarantees a large share of the exposure — up to 85% for micro enterprises and special categories, typically 75% otherwise. If the account fails, the Trust settles with the lender; your assets were never pledged.
You pay a small annual guarantee fee on the covered amount. The scheme now also covers retail and wholesale trade, widening access well beyond manufacturing and services.
Who is eligible?
- New and existing micro & small enterprises (Udyam-registered)
- Manufacturing, services — and now retail & wholesale trade
- Loan sanctioned by a CGTMSE member lending institution
- No collateral or third-party guarantee offered against the facility
- Clean repayment track — no default with any lender
Documents you'll need
- KYC — Aadhaar, PAN of promoters & entity
- Udyam registration certificate
- 2–3 years' ITR and financial statements
- 12 months' bank statements
- Project report / purpose note for the facility
Want a collateral-free limit under CGTMSE? We map your profile to the right lenders, prepare a bank-ready file and coordinate until disbursal — at no upfront cost.
Check your eligibility