CGTMSE Project Loan

The CGTMSE Project Loan is a government-backed financial scheme designed to support Micro and Small Enterprises (MSEs) by providing collateral-free credit facilities. Under this scheme, banks and financial institutions extend loans to eligible businesses, and the CGTMSE provides a guarantee cover to reduce the risk for lenders.

This initiative encourages entrepreneurship by removing the barrier of security or third-party guarantees, which often becomes a major hurdle for new and small businesses. The scheme is highly beneficial for startups, manufacturing units, service enterprises, and businesses planning expansion.

Key Features of CGTMSE Loan:

• Collateral-free loans up to ₹2 crore.

• Coverage for both term loans and working capital loans.

• Guarantee cover up to 75–85% depending on the borrower’s profile.

• Reduced risk for lenders, making credit more accessible.

• Promotes innovation, self-reliance, and MSME growth.

Eligibility:

• New and existing Micro & Small Enterprises.

• Startups with viable business plans.

• Manufacturing and service sector units (excluding retail trade, educational institutions, agriculture, etc.).

Benefits for Borrowers:

• Easy access to funds without collateral.

• Increased trust from lenders due to government guarantee.

• Encourages business expansion and project implementation.

• Supports India’s “Make in India” and MSME development mission.

With the CGTMSE Project Loan, entrepreneurs can confidently secure funding for their projects and focus on business growth without the burden of pledging assets.