What is CGTMSE Scheme | Full Form | CGTMSE Online Registration, Fee (cgtmse.in)

What is CGTMSE Scheme?

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was launched on 20 August 2020. The scheme was launched by the Government of India in association with the Ministry of Medium, Small and Micro Enterprises (MSME), and SIDBI. The primary motive of the CGTMSE scheme is to provide the credit assurance/ guarantee to the bank and other institutions to provide business to MSMEs.

Full Form Of CGTMSE

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

Features of CGTMSE Scheme

  • Reimbursement of 75% (85% in some cases) of the defaulted actual/ principal loan amount.
  • The maximum cap for compensation is Rupees Sixty-two lakhs and fifty thousand to Rupees Sixty-five lakhs for business loans up to Rs. 50 lakhs.
  • If the amount of the load is more than fifty (50) lakhs but and less than One Hundred (100) lakhs, then, in that case, the maximum guarantee is 50% of the loan amount.
  • The maximum guarantee will be 85% if the loan is taken up to Rs. 05 lakhs (Microloan). It may be noted that 85% of the actual loan amount is enclosed for loans taken in the NER and by women businesspersons.

Table For The Maximum Guarantee Cover Under The Scheme

 CategoryThe maximum amount of credit facility
Up to Rs. 5 lakhMore than Rs. 5 lakh to Rs. 50 lakhMore than Rs.50 lakh to Rs. 2 crores
Micro Enterprises85 % of the default amount maximum of Rs. 4.25 lakhs.75 % of the default amount maximum of Rs. 37.50 lakhs.75 % of the default amount maximum Rs.1.5 crores
Women and Units in NER80 % of the default amount maximum Rs.40 lakhs for credit facility up to Rs.50 lakhs. 
All others75 % of the default amount maximum Rs.40 lakhs for
Business activityCredit from Rs.10 lakhs to Rs. 1 crore
MSE Retail Trade50% of the default amount maximum of Rs.50 lakhs.

Process To Avail a Loan Under CGTMSE

Fee Charged by CGTMSE

It may be noted that the 1% fee will be charged with the total sanctioned amount

  • 0.75 % for credit of up to Rs. 5 Lakhs
  • 0.85% for credit that is above Rs. 5 Lakh but up to Rs. 100 Lakh

Procedure For Getting Loan Under CGTMSE

  • Prepare a Business Plan

First of all, a proper business plan must be prepared; the plan must include all the details of the business and should also have the practicality of the project.

  • Choosing the Lender Bank

After preparing the plan and amount of the loan, the next step is to choose the appropriate lender bank.

  • Submit the Application

After selecting the appropriate bank next step is to fil the application form by providing necessary details and also require to submit the same as per the rules and the regulations.

  • Verification of the Details

Now the bank will check the application form and check all the details of the business plan.

  • Approve and Releasing Funds

After that bank will approve the application form if all the details are valid release the funds.

  • Fee Payment

Finally, the borrowers have to pay the CGTMSE guarantee and required fee

Munendra Singh

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