CGTMSE Business Loan 2026 – No Collateral, Up to ₹5 Crore

🏭 What is CGTMSE?

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a government-backed credit guarantee scheme that allows banks to give business loans up to ₹5 crore WITHOUT asking for collateral or third-party guarantors. The government guarantees the loan to the bank — your business is the only security needed.

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Up to ₹5 Crore

Maximum Collateral-Free Loan

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No Collateral

No Property/Guarantor Needed

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85%

Guarantee Cover (Micro)

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200+ Banks

Participating Lenders

Who is Eligible?

New and existing Micro and Small Enterprises (MSEs) as per MSMED Act
Manufacturing and service sector businesses
Retail traders — up to ₹1 crore cover
Business must not have defaulted on any previous loan
Proprietorships, partnerships, LLPs, and private limited companies
No specific turnover minimum — assessed case by case

CGTMSE Guarantee Cover Details

Category	Max Loan	Guarantee Cover
Micro Enterprises	Up to ₹5 Crore	85% of loan
Women / NE Region / SC/ST	Up to ₹5 Crore	85% of loan
Small Enterprises	Up to ₹5 Crore	75% of loan
Retail Traders	Up to ₹1 Crore	75% of loan

Documents Required

Udyam Registration Certificate (mandatory)
PAN card and Aadhaar of proprietor/directors
Last 2–3 years ITR with P&L and Balance Sheet
Bank statements — 12 months
GST returns (if applicable)
Project report for new businesses
Existing loan sanction letters (if any)

How to Apply

Get your Udyam Registration Certificate at udyamregistration.gov.in — it is free and takes 10 minutes online. Guhan Capitals can assist.

Apply for business loan

Approach your bank for a term loan or working capital loan. Specify that you want it under CGTMSE coverage. Guhan Capitals identifies which banks process CGTMSE faster in your area.

Bank processes CGTMSE cover

The bank pays the Annual Guarantee Fee to CGTMSE on your behalf (typically 0.37%–1.35% of loan per year) and registers the guarantee.

Loan sanctioned and disbursed

Once CGTMSE cover is confirmed, the bank sanctions the loan. No property documents needed. Disbursement in 7–21 working days.

Apply Through Guhan Capitals — It's Free

We handle your application end-to-end. No running around. Best rates from 12+ banks.

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Frequently Asked Questions

What is the CGTMSE fee charged to the borrower?▼

The Annual Guarantee Fee (AGF) ranges from 0.37% to 1.35% of the loan amount per year, depending on the loan size and category. This is typically paid by the borrower and may be included in the loan processing charges.

Can I get CGTMSE loan for a new business with no turnover?▼

Yes, new businesses (including startups) are eligible. The bank assesses the project viability and your business plan. A detailed project report helps significantly.

Is CGTMSE and Mudra loan the same?▼

No. Mudra loans are for amounts up to ₹20 lakh for micro-enterprises. CGTMSE provides collateral-free guarantee cover for loans up to ₹5 crore. Mudra loans are also backed by a similar guarantee fund (CGFMU). Both can be used by MSMEs.

Which banks give CGTMSE loans in Tamil Nadu?▼

SBI, Canara Bank, Indian Bank, Bank of Baroda, HDFC Bank, ICICI Bank, Axis Bank and most PSU banks in Tamil Nadu offer CGTMSE-backed loans. Guhan Capitals works with 12+ lenders.