₹5 Crore Loan With Zero Collateral || #bekifaayati #youtubeshorts
Launched in 2000, the CGTMSE scheme is a loan subsidy scheme that offers credit guarantee to over 100+ Banks to offer funds and collateral-free business loans to micro and small enterprises. In April 2023, the credit facility ceiling was increased to ₹5 crore to enable more businesses to avail the benefits of the Credit Guarantee loan scheme.
Under this scheme, when a Bank lends funds to a borrower, it is backed by the scheme and provides coverage for up to 75-85% of the loan amount. This reduces the risks and also gives MSEs the scope to borrow funds for starting and growing their business.
The CGTMSE scheme limit was initially set at ₹2 crore but has been increased to ₹5 crore (applicable from April 2023) to meet the diverse and wider entrepreneurial needs.
