CGTMSE scheme is the part of Working Capital Finance for Micro & Small enterprise. Companies can also take funding in the form of term loan for machinery purchase & for construction of the factory.
Credit Guarantee Fund Trust for Micro & Small Enterprise is set up by the Ministry of Micro, Small & Medium Enterprise, Government of India & SIDBI to help the companies.
It is collateral free loan & Hybrid modal can also be possible.
A CGTMSE scheme acts as a guarantor for a business loan, enabling business owners to get a loan without giving any property.
A vital element of CGTMSE’s objective is to empower MSMEs by providing them with credit guarantees to access credit and establish sustainable enterprises.
The rate of interest is set in accordance with the RBI guidelines.
Under the CGTMSE scheme, both new and existing micro and small enterprises, including manufacturing, trading business and service enterprises are eligible for a credit facility of up to Rs. 5 crores depending on their financials and bank's policy.
Guarantee fees have been reduced as low as 0.37% to help the MSEs in overall cost of borrowing.
