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CGTMSE – A Driving Force for MSMEs


CGTMSE scheme

All the emerging businesses in India, be it micro, small, or medium are in constant need of finances. Such a need can arise due to several reasons such as expansion, purchase of heavy machinery, payment to creditors, working capital issues, or paying off business dues. But many times due to less knowledge of finance they do not receive proper guidance on the cause. Hence, we at Terkar Capital come into the picture for providing consulting on raising finances. We have a variety of products available in secured funding as well as unsecured funding based on the requirement of the borrower. CGTMSE can be the best option for Small and Mid-size enterprises to raise finance which acts as a major source of funds to them.

Features of the scheme

1. The initiative was launched to help small businesses grow in a competitive market and assist entrepreneurs to build their businesses and avail collateral-free loans easily and conveniently.

2. The scheme also aims at strengthening the credit lending facility to developing industries and help them raise funds for the same.

3. Being a collateral-free loan, the process is quite quick and convenient.

4. It has the facility of guarantee cover for their lenders which will cover their loss in case of default by the borrower. The guarantee cover will exist until the total tenure of the loan credit.

5. The guarantee coverage of the scheme ranges from 70-85% in case of non-payment by the borrower.

6. CGTMSE has a guarantee cover of 50%/75%/80%/85% as per the diverse eligibility criteria.

7. The maximum number of funds availed in this scheme is Rs. 200 Lacs.

8. CGTMSE provides good guarantee covers to North East Region Women Entrepreneurs as well and encourages them to expand their businesses.

The rate of interest may differ as per the market conditions

Procedure for CGTMSE 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

The lender will sanction your loan after duly verifying your documents

4. Obtain CGTMSE cover

Once the loan is sanctioned by the bank, the bank will apply to CGTMSE organization and obtain CGTMSE scheme cover for the loan sanctioned. After obtaining the loan, the customer will have to pay services charges or fees as per the requirement.

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 (MSE) engaged in manufacturing or service activities.

3. CGTMSE cover is not available for loans to enterprises engaged in retail trade, educational institutions, training centers, 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?

If you are looking for a reliable consultant for raising finance, Terkar Capital can best suit to you. It is one of the most modernized and highly specialized finance facilitators in Pune, Mumbai, and India. We understand borrower’s needs, strengths, and weaknesses and work hard to provide professional services. Our timely and professional services make us different from others. Apply for CGTMSE loan with Terkar Capital. 

About the author

Terkar Capital is the leading investment banking firm in India. We work Exclusively for the business and business houses for raising the debt capital. We use all the conventional and non-conventional ways to raise the funds for our clients and make sure that the cost of borrowing must match the best in the Indian Market. We are the leading Investment Banking Firm in India that arranges maximum finance for minimum collateral with assistance throughout the process. Terkar Capital is the best at providing end-to-end funding needs and financial solutions to corporate clients. We offer investment banking services with a broad range of advanced, tailored, affordable capital funding solutions.

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