CGTMSE scheme for MSMEs The Government of India, through the Ministry of MSMEs in collaboration with the SIDBI, jointly established a trust CGTMSE. It was officially launched on 30th  August 2000. Its primary objective is to offer credit guarantees to financial institutions that provide loans to MSMEs. Additionally, the CGTMSE scheme for MSMEs also encompasses partial collateral loans and retail trade, as part of the Rebooting CGTMSE initiative. CGTMSE Loan Consultant All the emerging businesses in India, micro, small, or medium, are in constant need of finances. Whether it’s for expansion, purchasing heavy machinery, paying creditors, addressing working capital issues, or settling outstanding dues. Unfortunately, many of these businesses lack the financial knowledge needed to secure the funding they need. Hence, we at Terkar Capital come into the picture to provide consulting to help MSMEs raise required finances. Apply Now Features of CGTMSE loan Scheme The initiative helps small businesses grow in a competitive market through accessible loans It also aims at strengthening the credit lending facility to developing industries and helping them raise funds for the same. Collateral-free loan offers a fast and convenient process It provides guarantee cover for lenders to protect against losses in case of borrower default. Coverage lasts for the loan’s entire term. The CGTMSE coverage ranges from 70-85% in case of non-payment by the borrower. CGTMSE offers guaranteed coverage ranging from 50% to 85%, subject to meeting specific eligibility requirements. The maximum number of funds availed in this scheme is Rs. 500 Lacs (i.e. Rs 5 Cr) CGTMSE provides good guarantee covers to North East Region Women Entrepreneurs as well and encourages them to expand their businesses. Procedure for CGTMSE loan scheme 1. Prepare a project report/ business plan The crucial step is preparing the project report or a business plan. It has to be submitted to the lending company. Here the lending company will scrutinize whether the company is eligible under the scheme or not. 2. Scrutiny of documents The lending institution or company will do a thorough investigation of the required documents and proceed with loans. 3. Sanction the loan a. Prepare a project report/ business plan The crucial step is preparing the project report or a business plan. It has to be submitted to the lending company. Here the lending company will scrutinize whether the company is eligible under the scheme or not. b. Scrutiny of documents The lending institution or company will do a thorough investigation of the required documents and proceed with loans. c. Sanction the loan The lender will sanction your loan after duly verifying your documents. d. Obtain CGTMSE cover Once the loan is sanctioned by the bank, the bank will apply to the CGTMSE organization and obtain the CGTMSE loan scheme for MSMEs to cover the loan sanctioned. After obtaining the loan, the customer will have to pay service charges or fees as per the requirement. Learn the process of CGTMSE Funding from the case study. How much is CGTMSE fees? The trust fund charges 1% p.a. of the amount so approved as fees: 0.75% – for loans of up to Rs. 5 Lakhs 0.85% for loans above Rs. 5 Lakhs but up to Rs. 100 Lakh. The credit guarantee available below this scheme is 75/80% of the amount so transmitted to a maximum cap of Rs. 62.5 Lakh / 65 Lakh for a loan facility of up to Rs. 50 Lakhs. The percentage guarantee implies 85% for microenterprises for up to Rs. 5 lakhs. The guarantee percentage is 50% of the amount approved for a credit of above Rs. 50 Lakhs with a maximum limit of Rs. 100 Lakhs. The ownership of the guarantee is a block of 5 years. Eligibility for CGTMSE (Borrower) 1. The applicant must be categorized as micro and small enterprises. 2. CGTMSE cover is available for Loans to Micro and Small Enterprises engaged in manufacturing or service activities. 3. CGTMSE cover is not available for loans to enterprises engaged in retail trade, educational institutions, training centres, self-help groups, and agriculture. 4. The business must have at least 3 years of continuity. Eligible Lending Institution: CGTMSE has designated Member Lending Institutions (MLI) which can provide loans to MSMEs. In this list, there are Government Banks, Scheduled Commercial Banks, Regional Rural Banks, NBFCs, Financial Institutions, etc. who have signed an agreement with the CGTMSE ministry. Why Terkar Capital? Terkar Capital is a leading CGTMSE loan consultant in India, specializing in empowering MSMEs through CGTMSE loans. We understand the financial needs of emerging businesses, especially MSMEs in India. Our goal is to provide personalized consulting services to help MSMEs secure the necessary funding for their expansion, machinery purchases, working capital, and more. We offer a range of financial products, including secured and unsecured funding options, tailored to meet the specific requirements of borrowers. One attractive funding option for MSMEs is the CGTMSE loan, which now offers an extended credit limit of up to Rs 5 crore. Apply Now

CGTMSE Loan Scheme Micro and Small enterprises equal a huge chunk of our Indian economy. As the year progresses, micro and small businesses and entrepreneurs are introducing innovative products and services. CGTMSE loan scheme is a Credit Guarantee Trust Fund for Micro and Small Enterprises. The Government of India in association with SIDBI introduced the CGTMSE loan. The scheme guarantees funds to lending institutions that provide loans up to 5 Crores to small and micro-enterprises. It is up to a certain limit. CGTMSE is an initiative that allows lending institutions to provide credit facilities to small and micro enterprises without the availability of collateral or security. Another objective of this scheme is to help small and micro establishments to thrive in the competitive market. Avail funds especially without the availability of collateral. CGTMSE lock-in period Before the lending institution puts up a claim on the trust, there is a lock-in period of 18 months. It is from either the date of the last disbursement of the loan to the borrower. Or the date of the guarantee cover coming into force in respect of the particular credit facility. So, the CGTMSE lock-in period of 18 months is there in the provision to ensure that the process influent and the lending institution’s fund security remains at stake. Learn from the CGTMSE scheme from FAQs here. CGTMSE Loan Scheme Charges: The CGTMSE requires the following charges – CGTMSE loan scheme Charges are not fixed. It depends on bank-to-bank or lending institutions. This is done to ensure that the loan scheme works fine for both the lending institution and the borrowers. In this case, the borrowers are Micro and Small scale enterprises. They are the backbone of our Indian economy. Amid an economic slowdown, the government introduced this scheme along with SIDBI. This will provide essential leverage to the borrower which can later enhance its enterprise. 1. Annual Service Fee Guarantee cover extended by Credit Guarantee Fund Scheme for loans provided before the date of 1st January 2013. Following any specific borrower shall be valid only if the concerned Multilateral convention to implement tax passes. An annual service fee (ASF) of 0.50% on the amount guaranteed for credit facilities up to 5 lakh and 0.75% on the amount guaranteed for credit facilities over 5 lakh and up to 100 lakh. 2. Cost to the Borrower The Credit Guarantee Scheme leaves it to the convenience of the MLIs to decide the annual service fee. Otherwise, they can also bear it themselves. 3. Borrower payable Interest rate Any credit facility that has been sanctioned by the lending institution (all scheduled commercial banks, selected financial institutions) and NBFCs. The maximum interest rate is not more than 14% p.a. and 18% p.a. respectively including the cost of guarantee cover. The interest rate shall not exceed the given parameters. Process to Apply for CGTMSE Loan Scheme: 1. Commencement of the business organization First and foremost is the starting of a company. What we mean is to register an enterprise under the Government of India. As this scheme cannot be availed unless the enterprise is a registered one. 2. Making a project or business report/description This is extremely important. Because it portrays the potential of a business enterprise to function or a project that may turn out to be a profitable one. A good, written descriptive report will ensure that there are no hurdles in making the most out of the CGTMSE scheme. The viability of the project acts as a major factor in availing this type of scheme, if the project is viable then the Government itself becomes ambitious toward the outcomes. 3. Get Coverage under CGTMSE scheme. If you are an eligible candidate to avail of this scheme, this procedure is deemed to be completed by now, you must first check the CGTMSE eligibility according to your case. Let’s understand the process of the CGTMSE from the case study. Eligibility criteria Are you looking forward to availing and making the most out of this ambitious government initiative? Then, you must consider Terkar Capital for availing of the Loan under CGTMSE. We are a trustworthy lending institution. Even if you are doubtful about the scheme, Don’t worry. The executives in Terkar Capital will explain to you the complete procedure, client privacy, and requirements. We have been helping small and micro enterprises to flourish over the years. Note: The eligibility criteria are common for applicants across India. However, there may be certain other kinds of criteria as well. They are to be met specifically by the region or the financial institution that is sanctioning the loan. How to Apply for a Business Loan under CGTMSE? The application for the loan is to be made to the banks and financial institutions that are eligible to provide loans under the CGTMSE scheme. The government, as well as private banks, are involved in the scheme. It is spread out even to rural areas. The application can be made only if the candidate is eligible for a loan under the CGTMSE scheme. The documents required for the processing of the loan will differ from case to case. CGTMSE Loan at Terkar Capital We are a reliable lending institution, that assists small and micro enterprises in taking advantage of this government initiative. The scheme provides a guarantee to lending institutions, allowing them to offer loans to enterprises without collateral. Eligible candidates can apply for the CGTMSE loan by meeting the required criteria and submitting the necessary documents to the eligible banks or financial institutions participating in the scheme. Let’s Apply at Ease with Terkar Capital.