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Startup-relevant scheme · Ministry of Micro, Small and Medium Enterprises

Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)

Open nowChecked 3 October 2026

Active. Guarantee ceiling ₹10 crore per borrower (from 1 Apr 2025); Budget 2026-27 adds a CGTMSE guarantee for MSME invoice discounting on TReDS. Apply through a CGTMSE member lending institution.

Amount
Guarantee cover up to ₹10 crore
Type of support
Loan / Credit
Best for
Seed / Early-Stage, Growth / Scaling
Who can apply
MSMEs, Women entrepreneurs
Go to the official portalSource: DPIIT playbook p. 80

Under the CGTMSE, collateral free loan is provided to Micro and Small Enterprises (MSE) units.

Who can apply?
  • Loans sanctioned to Micro and Small Enterprises (MSE) units, as per the definition of the Ministry of MSMEs engaged in all eligible activities including trading activity.
What do you get?
  • Collateral free loan is available for individual MSE on payment of guarantee fee to bank by the MSE
  • The cap of ₹10 crore is the maximum guarantee coverage limit (irrespective of the unit activity including Trading) per borrower based on the outstanding credit facilities and the borrowers can avail incremental credit facilities
  • Modified guarantee cover is available for Women entrepreneurs / Units located in Northeast Region.
How to apply

Apply to a MLI (Banks, NBFCs, FIs) registered with CGTMSE for MSE loan (Term Loan or Working Capital). Check the official CGTMSE website for the list of MLIs: https://www.cgtmse.in/

Objectives

The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in order to implement Credit Guarantee Scheme for Micro and Small Enterprises. The corpus of CGTMSE is contributed by Government of India and SIDBI. 75% of the loan amount to the bank is guaranteed by the Trust Fund.

Key links

Deadlines, amounts and windows change. Check the official portal before you apply.

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