CGTMSE Scheme

The CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme is an initiative by the Government of India and SIDBI to support the growth of micro and small enterprises. It offers collateral-free credit to businesses, ensuring they can access loans without providing assets as security. Under this scheme, financial institutions can extend loans up to ₹2 crore, with the trust providing a credit guarantee to cover potential losses. This encourages banks to lend more to small businesses, helping them with working capital, expansion, or setting up new ventures. CGTMSE boosts entrepreneurship, promotes financial inclusion, and drives economic growth in the MSME sector.