Credit Guarantee Fund Trust for Micro and Small Enterprises
Ministry of MSME and SIDBI
Lets new or existing micro and small enterprises, including service and trading businesses, borrow from banks and other lenders without collateral or a third-party guarantee. The trust guarantees a share of the loan to the lender. Cover is higher for micro loans and for women and SC or ST founders, among others.
What you can get
Guarantee cover up to ₹10 crore per borrower, covering 75% to 90% depending on category and loan size
Do you repay it?
Yes, or it takes equity
Type
Credit guarantee
Where
All of India
Current status
The CGTMSE site shows activity to 31 March 2026, with 322 registered lenders and notices on the ₹10 crore limit. The guarantee scheme document is updated to 1 April 2025. No end date or window is published.
Who can apply
- New or existing micro or small enterprise, as the MSME Ministry defines it
- Loan from a lender registered with the trust
- Credit given without collateral or third-party guarantee, or under the partial collateral option
How to apply
- 1Approach a registered lender for a term loan or working capital
- 2The lender assesses and sanctions under its own process
- 3The lender then applies for the guarantee and pays the fee
The catch
You cannot apply yourself, because the lender has to agree first. Guarantee fees start at 0.37% a year and rise with loan size, and lenders often pass them on. CGTMSE warns about lookalike sites and agents.
We read this on the official page on 4 November 2026. Rules and dates change, so confirm there before you apply. Founders Wing is not connected to this scheme, does not help with applications and never charges for access to it.