Being a developing country, India has quite a number of micro and small enterprises. Considering this particular scenario of the Indian economy, the Government of India has introduced CGTMSE Scheme. There are several perks to this scheme as well. It has benefitted most of these enterprises in building their business and renewing them.
There is much more to the CGTMSE scheme. The population of youth in India is pretty high. It has even encouraged aspiring entrepreneurs to give a push to their ideas and establish a firm. So, in India, there are mainly manufacturing companies that fall under the SMEs. Thus, it is a sector where the CGTMSE scheme has majorly demonstrated its good work.
Apply for Unsecured Business Loan up to 2 Crores under CGTMSE at ease.
The Government of India introduced the CGTMSE scheme in the year 2000. It stands for Credit Guarantee Fund Trust for Micro and Small Enterprises. The scheme aims at aiding Indian firms that are in their initial phases or fall under the MSE. The scheme focuses on providing credit guarantees to financial institutions providing loans to MSMEs. The applicant owning an MSE get a CGTMSE loan under this scheme. So, it does not require the applicant’s business person to possess collateral. Although, there are certain eligibility criteria that the candidate needs to match.
To acquire a loan under this scheme, an applicant has to meet the parameters. Those should list under the CGTMSE scheme eligibility criteria. Also, remember that these criteria may differ from case to case.
Some of the essential criteria are as follows:
Note: The eligibility criteria are common for applicants across India. However, there may be certain other criteria as well. Those are to meet specifically with the region or the financial institution that sanctions the loan.
The application for the loan has been made to the banks. So, the eligible financial institutions provide loans under the CGTMSE scheme. Government and private banks are involved in the scheme. It is spread out even to the rural areas. The application is made only if the candidate is eligible for a CGTMSE loan. The documents required for the processing of the loan will differ from case to case. Thus, general steps in acquiring a loan under the CGTMSE scheme can be listed as follows-
Start your business
This includes registering your business. Starting the required bank account. And completing other formalities to start your business.
Prepare a project report
This is extremely crucial as the chances of your loan getting approved will significantly depend on this. You will have to provide a thorough business plan with all the required details.
Apply for the sanction of a loan
Along with the project report, visit a reputed financial institution or bank to apply for your loan.
Get the CGTMSE coverage
Once your loan is sanctioned, the institution or bank will apply to the respective CGTMSE scheme. Upon approval, you can acquire the loan by paying the necessary service charges and CGTMSE charges.
Learn more about the CGTMSE scheme through FAQs.
The requirement of documents varies from lender to lender. Also from case to case. However, in all scenarios, there are a standard set of documents. Those are as follows.
Registered Partnership Deed
In Case of LLP
Let’s understand the CGTMSE Loan Process from the case study.
Terkar Capital is a trustworthy financial institution that provides hassle-free unsecured funding up to 2 crores under CGTMSE. We assist the borrower to know in detail about the scheme. Also, help in making the most suitable choice. Thus, we respect the relationship even after the loan. We ensure the satisfaction of the borrower with the loan and the services.