Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)
Ministry of Micro, Small and Medium Enterprises
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.
What changed: Budget 2026 TReDS link added
Sources (2)
Under the CGTMSE, collateral free loan is provided to Micro and Small Enterprises (MSE) units.
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.
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/