Credit Guarantee on Loans to Micro and Small Enterprises and New Entrepreneurs
Overview:
Our website provides comprehensive Information and support regarding the Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) and New Entrepreneurs. This scheme is a crucial component of government initiatives to foster the growth of small businesses by mitigating the risks associated with obtaining loans. Focusing on empowering micro and small enterprises and new entrepreneurs, this program offers a credit guarantee cover that encourages financial institutions to extend credit facilities to this vital sector. By navigating our platform, you will find detailed insights into the eligibility criteria, application process, and benefits of this credit guarantee scheme, enabling you to make informed decisions about securing the necessary financial support for your business endeavors.
As advocates for financial inclusivity and the advancement of micro and small enterprises, our website serves as a user-friendly resource hub where entrepreneurs can access relevant Information, success stories, and expert guidance on navigating the Credit Guarantee Scheme. We can empower emerging businesses and entrepreneurs to thrive in a supportive financial ecosystem by facilitating a deeper understanding of this initiative. Explore our content to stay informed, confident, and well-prepared as you navigate the landscape of credit opportunities for your micro or small enterprise.
Eligibility & Conditions:
- Existing Micro, small, and service Entrepreneurs & Aspiring Entrepreneur all are eligible
Nature of Scheme:
- Credit Guarantee Trust implements the scheme rust for MSE (CGTMSE);
- Credit guarantee for loans up to Rs. 2.00 crore, without collateral and third-party guarantee;
- Guarantee coverage ranges from 85% (Micro Enterprise up to Rs 5 lakh) to 75% (others);
- Recently, guarantee coverage made eligible to select NBFCs and Small Finance banks;
- The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit from
- Rs. 10 lakh to Rs. 100 lakhs per MSE borrower for retail trade activity.
- The extent of guarantee cover is 80% for (i) Micro and Small Enterprises operated and owned by women and (ii) all credits/loans in the North East Region (NER) for credit facilities up to Rs 50 lakh.
- In case of default, CGTMSE settles the claim with the lending institutions.
Steps for Availing the Assistance:
- Apply through Member Lending Institutions (MLIs- Banks and NBFCs).
- A list of MLIs is available at www.cgtmse.in
