Credit Guarantee Scheme

Credit Guarantee Scheme for Micro & Small Enterprises:

Ministry of MSME started Credit Guarantee Scheme for Micro & Small Enterprises (MSEs) in the year 2000. In order to implement the Credit Guarantee Scheme, Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) was setup by the Ministry of MSME, GoI and SIDBI.
Credit Guarantee Scheme aims to facilitate access to credit for un-served and under-served MSE segment of MSME Sector, making availability of credit from conventional lenders to new generation entrepreneurs and under privileged that lack supporting their loan proposal with collateral security and/or third party guarantee.
Over past two decades, CGTMSE has established itself as an important institution endeavoring to increase the flow of credit to MSEs segment without the hassle of collateral security. With effect from 01.04.2023, this scheme facilitates collateral free credit support of upto Rs. 5 crore to MSEs, extended by the CGTMSE’s Member Lending Institutions.
To know more about the detailed guidelines, check out: