The Pradhan Mantri Credit Guarantee Scheme (CGTMS) is a government-backed guarantee scheme designed to enable micro, small, and medium enterprises (MSMEs) to access credit without collateral. Get guidance on eligibility, guarantee coverage, and how this scheme can support your business growth.
The Pradhan Mantri Credit Guarantee Scheme for Micro and Small Enterprises (CGTMS) is a government initiative that provides a credit guarantee to MSMEs against their bank loans. The scheme reduces the lender's risk, enabling banks to provide loans to businesses that might not have traditional collateral.
Under this scheme, the government provides a guarantee cover for loans up to a certain limit, which helps MSMEs access credit at reasonable rates without pledging physical assets. This makes it easier for small business owners to expand operations, purchase equipment, or meet working capital needs.
Access credit without pledging physical assets, making it ideal for capital-constrained businesses.
Government guarantee on loans provides additional security and reduces bank risk assessment.
Guaranteed schemes often come with favorable interest rates and simplified approval processes.
Gather business registration, ownership proof, and project/business plan details.
Contact an authorized CGTMS partner bank or financial institution.
Submit loan application with business details and supporting documentation.
Loan sanctioned with government guarantee cover and disbursal.
Use our EMI calculator to estimate your monthly repayments based on loan amount, interest rate, and tenure.
Calculator results are indicative only. Actual sanction terms depend on lender review and CGTMS guidelines.
The scheme provides guarantee cover on loans issued to MSMEs, covering a percentage of default risk. Specific guarantee percentage and loan limits vary by scheme type and current guidelines.
A nominal guarantee fee is charged for the government guarantee coverage. This fee structure and rates are determined by CGTMS authorities and partner lending institutions.
Multiple nationalized banks, private banks, and non-banking financial companies (NBFCs) are authorized CGTMS partners. Check the official website for the complete list of partner institutions.
For comprehensive details on scheme rules, eligibility updates, and participating lenders, visit the official CGTMS website at www.cgtmse.in