Are you planning to start or grow your small business in India but worried about providing collateral? The Credit Guarantee Scheme (CGTMSE) 2025 is here to support you. This government-backed scheme makes it easier for entrepreneurs to get bank loans without needing collateral or third-party guarantees, especially helping first-generation entrepreneurs set up their businesses.
Overview of the Credit Guarantee Scheme 2025
The Ministry of Micro, Small and Medium Enterprises (MSME) introduced CGTMSE to improve credit access for micro and small businesses in India. It created a trust with SIDBI that guarantees loans from banks and lenders, so entrepreneurs don’t have to pledge assets. This means if you take a loan and can’t repay it, the trust covers most of the loss for the lender, making banks more willing to lend.
Main Details of the CGTMSE Scheme
| Scheme Name | Credit Guarantee Scheme (CGTMSE) |
| Launched By | Government of India |
| Beneficiaries | Indian Entrepreneurs |
| Main Objective | Provide credit guarantee to promote easy bank loans |
| Official Website | https://www.cgtmse.in/ |
| Year | 2025 |
Purpose of the Scheme
The CGTMSE works by guaranteeing loans given to entrepreneurs, encouraging banks to lend without asking for collateral. This is especially useful for first-time business owners. If you are unable to repay your loan, the guarantee trust will cover up to 85% of the loss the bank faces. This support helps your business expand and contributes to the economy.
Guarantee Coverage and Loan Limits
The scheme offers guarantees up to ₹200 lakh without requiring collateral. The coverage percentage depends on the loan amount and borrower type:
- Micro-enterprises with loans up to ₹5 lakh get 85% guarantee.
- Women entrepreneurs and units in Northeast India get 80% guarantee for loans up to ₹50 lakh.
- Other borrowers get 75% guarantee on loans above ₹5 lakh up to ₹200 lakh.
- Retail trade activities have 50% guarantee for loans up to ₹100 lakh.
Category Wise Guarantee Details
| Category | Up to ₹5 lakhs | ₹5 lakhs to ₹50 lakhs | ₹50 lakhs to ₹200 lakhs |
|---|---|---|---|
| Micro Enterprises | 85% of defaulted amount (max ₹4.25 lakh) | 75% of defaulted amount (max ₹37.5 lakh) | 75% of defaulted amount (max ₹150 lakh) |
| Women Entrepreneurs / NE Region Units | 80% of defaulted amount (max ₹40 lakh) | 80% of defaulted amount (max ₹40 lakh) | 75% of defaulted amount (max ₹150 lakh) |
| Other Borrowers | 75% of defaulted amount (max ₹37.5 lakh) | 75% of defaulted amount (max ₹37.5 lakh) | 75% of defaulted amount (max ₹150 lakh) |
| MSE Retail Trade | 50% of defaulted amount (max ₹50 lakh) |
Types of Credit Guarantee Scheme
- For Banks: Guarantees for loans banks give to small businesses.
- For NBFCs: Allows non-banking financial companies to lend with guarantee cover.
- Sub Debt Scheme: Lets commercial banks offer equity-like loans to help stressed MSMEs.
- PM Svanidhi: Supports urban street vendors with guaranteed loans for working capital needs.
Benefits and Features
- Easy bank loans for small business owners without collateral hassles.
- Helps first-generation entrepreneurs.
- Credit Guarantee Fund set up by Government of India and SIDBI.
- Guarantee up to ₹200 lakh for eligible credit facilities.
- If you can’t repay the loan, your lender will get compensated for most losses.
Who Can Apply?
- Manufacturing businesses.
- Service-related businesses.
- Retail trade businesses.
Who is Not Eligible?
- Educational or training institutions.
- Self-help groups.
- Agriculture-based activities.
Credit Guarantee Scheme Highlights
| Guarantee approved in financial year 2020 | ₹45,851 crore |
| Growth rate and coverage | 52% |
| New products growth (retail and hybrid) | ₹16,103 crore |
| Guarantees for new NBFCs in 2024 | ₹17,349 crore |
How to Apply for Credit Guarantee Scheme
- Visit official CGTMSE website.
- Click on the ‘Register’ button on the homepage.
- Fill in your full name, email, mobile number, and captcha.
- Click on ‘Get OTP’ and enter the OTP you receive.
- Complete registration and log in using your details.
- Enter your GST details and upload your Income Tax Return.
- Fill in all requested information and bank account details.
- Submit your application.
Member Login Procedure
- Go to the CGTMSE website.
- Click on ‘Members Login’ on the homepage.
- Choose your scheme (banks, NBFC, Sub Debt, PM Svanidhi).
- Enter your login ID and password.
- Click Login to access member services.
How to Download Financial Reports
- Visit the official CGTMSE website.
- Click on ‘Financial Information’ from the menu.
- Select ‘Financial Report’ to download the available documents.
Using Guarantee Calculator
- Open the CGTMSE website.
- Click on ‘Guarantee Calculator’ on the homepage.
- Fill in your pin code, state, district, city, gender, and business activity.
- Click Submit to see your estimated guarantee coverage.
How to Find Contact Details
- Go to the CGTMSE website.
- Click on ‘Contact Us’ to find all contact information.
Member Lending Institutions under CGTMSE
- 12 Public Sector Banks
- 22 Private Sector Banks
- 51 Regional Rural Banks (RRB)
- 5 Foreign Banks
- 9 Financial Institutions
- 28 Non-Banking Financial Companies (NBFC)
- 6 Small Finance Banks (SFB)
- 8 State and Urban Co-operative Banks (SUCB)
Eligibility and Required Documents
- Should be an Indian permanent resident.
- Must be a first-generation entrepreneur.
- Aadhar Card
- Ration Card
- Income Certificate
- Passport Size Photographs
- GST Registration Details
- Income Tax Returns (ITR)
- Bank Account Details
- Active Mobile Number and Email ID
If you want to start or grow your small or micro business but lack collateral to secure a loan, the Credit Guarantee Scheme 2025 can open doors for you. The process is simple and supportive, aiming to help entrepreneurs expand without worries. Visit the official CGTMSE website for updates and start your application today!