No collateral is required for loans up to 5 crores! 🤩
The Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE) is a trust established by the Government of India, operating under the Ministry of Micro, Small and Medium Enterprises (MoMSME) and the Small Industries Development Bank of India (SIDBI). This initiative provides credit guarantees to financial institutions that offer loans up to Rs. 5 crores to Micro and Small Enterprises (MSEs) across India.
In this context, Credit Guarantee means that the loan given to an applicant is supported by a third party, eliminating the need for external collateral or third-party guarantees. Under this scheme, CGTMSE strengthens the loan approval of the lending institution by providing a substantial guarantee covering a significant portion of the loan amount.
Benefits of the CGTMSE Scheme:
The guarantee coverage ceiling increased from Rs. 200 lakh to Rs. 500 lakh.
Reduced guarantee fees to lower the overall borrowing costs for MSMEs.
Microfinance Institutions as Member Lending Institutions (MLIs) are now eligible.
Fee concessions and increased coverage for SC/STs.
10% reduction in guarantee fees and increased coverage to 85% for Women, ZED Certified Units, and Units in Aspirational Districts.
Revised annual guarantee fee structure with fees as low as 0.37%.
For more information and assistance, you can contact MSME Helpline.
It's important to note that the purpose of this video is to educate the general public about the CGTMSE scheme. Securing a bank loan or government assistance involves fulfilling specific eligibility criteria, which applicants must meet, just like any other loan application.
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