08/07/2024
Get ₹ 5 Crores to start a new Business !!!!..... What is CGTMSE scheme ?? Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Collateral-free loan with guarantee coverage for micro and small businesses. CGTMSE is a Government of India scheme launched in the year 2000 in collaboration with the Small Industries Development Bank of India (SIDBI). CGTMSE offers loans to Micro and Small Enterprises (MSEs) without any collateral or third-party guarantee. CGTMSE provides guarantees to eligible MSEs on loans availed from Member Lending Institutions (MLIs), i.e., public, private and foreign banks and financial institutions. Under the CGTMSE scheme, MSEs have been availing credit guarantees up to a ceiling limit of ₹2 crore. This has been revised to ₹5 crore from April 2023. Some of the key benefits of CGTMSE are: No collateral requirement - Providing collateral is difficult for small businesses as most of them have limited or no assets. Loans availed under the CGTMSE scheme are collateral-free. Nominal guarantee fee - Loans taken under the CGTMSE charge an annual guarantee fee (AGF). AGF for small ticket loans of up to ₹10 lakh is a nominal fee. The highest AGF is for loans between ₹2-5 crore, charged at 1.35% of the loan amount which may vary from time to time. Increased fund availability - Eligible MSEs can borrow loans of up to ₹5 crore through CGTMSE. This can help businesses meet working capital and capital expenditure needs, and support units to invest in technology and infrastructure, and finance their other business expansion plans. Easy to apply - CGTMSE has clearly defined guidelines and instructions, which makes it easy for MLIs, such as HDFC Bank, to disburse loans efficiently. The loan process itself is quite simple and Easy to apply. Eligible borrowers/businesses can apply for a loan under the CGTMSE scheme by providing the following documents: The CGTMSE loan application form Proof of business incorporation or company registration certificate Passport-sized photo of the applicant KYC of the borrower Udyam Registration Certificate(CGTMSE Scheme , collateral free/unsecured loan ) scheme
