CGTSME Scheme provide collateral free loans to MSME & MSE including start up business through extending credit facility ( term loans/ cash credits/ overdraft ) up to Rs 5 Crore.The Scheme provides Guarantee cover for sanction of collateral free loans to the entrepreneurs by Banks/FIs.

Eligible Borrowers/Units : Loans sanctioned to Micro and Small Enterprises (MSE) units, as per the definition of the Ministry of MSMEs engaged in all eligible activities including trading activity upto Rs.5.00 crores. Obtention of Udyam Registration Number is mandatory for obtaining Guarantee Cover.

CGTMSE has also added feature of “Hybrid Security” product where the Banks/FIs are allowed to obtain collateral security for a part of the credit facility, whereas the remaining can be covered under CGTMSE upto a maximum of Rs. 5.00 crores.