Business Loan Rs 5 Cr Under CGTMSE

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Business Loan under CGTMSE Scheme

As a developing country, India has a large number of micro and small-scale industries. In response to this particular situation, the Government of India has introduced the CGTMSE scheme. Applying for business loans up to 5 crores under CGTMSE has been very beneficial for MSMEs, helping them to grow, expand and revive their businesses.

The CGTMSE scheme offers much more than meets the eye. It’s been a boon for aspiring entrepreneurs, providing the financial push they need. The manufacturing sector, a cornerstone of Indian MSMEs, has seen a particularly positive impact from the CGTMSE scheme. For the entrepreneur in need of financial support, the CGTMSE scheme is worth exploring. It presents a unique opportunity to secure a government-backed 5 crore loan without collateral.

Key Features to Apply for CGTMSE Scheme

CGTMSE Scheme Eligibility

To be eligible for a business loan under CGTMSE, you must meet certain criteria. These criteria may vary, but some of the essential requirements include:

Applicant must own a micro or small enterprise.
The Business must have at least 3 years of business continuity.
Small and medium-sized manufacturing units are eligible.
All manufacturing and service sector companies can use this facility.

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.

Advantages of Business Loan under CGTMSE

The scheme also aims at strengthening the credit lending facility overall.
CGTMSE loan offers a Hybrid Security product that covers the credit facility covered without collateral.
Under this scheme, the government helps to extend the credit facility up to 5 Crores.
Guarantee cover will exist until the total tenure of the loan credit.
The CGTMSE aims to acquire term loans & working capital utilities from the same organization.

Documents Required to Appy for CGTMSE Loan

CGTMSE loan documents vary from lender to lender. Also from case to case. However, in all scenarios, there is a standard set of documents. Those are as follows.

I. KYC Documents

A copy of PAN Card.
Proof of Address: (Passport Copy / Aadhaar Card / Electricity Bill / Registered Rent Agreement)
Statutory documents

1. Proprietary Firm

Shop Act
GST Registration Certificate
Udyog Aadhaar Memorandum
VAT Registration
GST certificate
other Registrations Applicable.

2. Private / Public Limited Company/One Person Company

MOA & AOA, Certificate of Incorporation
Certificate of commencement of business in case of a public limited company
GST Registration Certificate
Shop Act
Udyog Aadhaar Memorandum
VAT Registration
and other Registrations Applicable.

3. Partnership Firm

Registered Partnership Deed

4. In Case of LLP

LLP Agreement
Shop Act
Udyog Aadhaar Memorandum
GST Registration Certificate
VAT Registration and
Other Registrations Applicable.

II. Income Documents

Last 3 years Financials (IT Returns, Computation Sheet & Balance-sheet). Proof of turnover vide latest sales/service tax returns and Invoice / Purchase Order Copy (for the loan against receivables)
Last 1-year bank statement of all operative bank accounts.
Details of all existing loans: Sanction Letter and Loan Account Statement for the last 1 year.

III. Property Documents

Previous & current sales deed
Plant & machinery list
Plant & machinery current valuation report
Margin money
Property photographs
Previous property search & valuation report

Get the CIBIL Score & the report for FREE.

CGTMSE Loan Coverage

The Government of India introduced the CGTMSE scheme in 2000 to support small businesses. 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 MSME. It focuses on providing credit guarantees to financial institutions providing loans to MSMEs. Hence, an applicant owns a small/medium-scale business and gets a business loan without collateral of up to 5 crores under the CGTMSE scheme. However, there are certain eligibility criteria that the candidate needs to match.

How to apply for a Business Loan under CGTMSE?

The loan application is submitted to banks, which are then eligible to provide loans under the CGTMSE scheme. Government and private banks are involved in the scheme, which is available even in rural areas. So, here are the steps in obtaining a business loan under the CGTMSE scheme:

1. Start Your Business

We cordially track the deadlines and make our quality tangible, while executing finance projects well ahead of time.

2. 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.

3. Apply For Loan Sanction

Along with the project report, visit a reputed financial institution or bank to apply for your loan.

4. Get the CGTMSE Coverage

Once your loan is approved, the institution or bank will apply to the relevant CGTMSE scheme. After approval, you can get the loan by paying the required service charges and CGTMSE charges.

Apply for a CGTMSE Loan at Terkar Capital

Terkar Capital, a reliable financial institution and your trusted CGTMSE loan consultant, offers hassle-free unsecured funding of up to 5 cr under the CGTMSE scheme. We provide personalized assistance to help business decision-makers understand the scheme thoroughly and make the best choice for their needs. Our commitment extends beyond the loan process as we value our relationship with borrowers. We strive to ensure their satisfaction with both the loan and our services.

How do we Execute?

Here’s the execution process to avail of a business loan under CGTMSE smoothly at Terkar Capital.

What sets us apart?

1. Fast Turnaround Time

We cordially track the deadlines and make our quality tangible, while executing finance projects well ahead of time.

2. Confidentiality

We comply with the highest professional confidentiality standards. All client information is discussed in strict confidentiality.

3. Competitive ROI

We find you the right lenders with similar terms and the lowest rate of interest.

4. Hassle-free Processing

We create a stable ownership structure for financiers by establishing a secure transaction process.

5. High Level of Integrity

We are building our reputation through reliability, integrity, and honesty. We connect to our clients on personal grounds that include transparency and liability.