Credit Guarantee Scheme for Micro & Small Enterprises

Objective

• To encourage first generation entrepreneurs to venture into self-employment  opportunities  by  facilitating credit guarantee support for collateral free / third-party guarantee-free loans to the Micro and Small enterprises (MSEs), especially in the absence of collateral.

Key benefits

• Credit guarantee for loans up to Rs. 5 crores, without collateral and third-party guarantee.
• Guarantee coverage ranges from 85% (Micro Enterprise up to Rs 5 lakhs) to 75% (others).

Scheme applicable for

Existing Entrepreneurs and Aspiring Entrepreneurs.

Scheme information

• Any collateral/ third party guarantee free credit facility (both fund as well as non-fund based) extended by eligible institutions, to new as well as existing Micro and Small Enterprises, including Service Enterprises, with a maximum credit cap of Rs. 5 crore are eligible for guarantee under the scheme. Recently, guarantee coverage made eligible to select NBFCs and Small Finance banks.
• The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility. The extent of guarantee cover is 85% for micro enterprises for credit up to Rs. 5 lakh. The extent of guarantee cover is 75% of the sanctioned amount of the credit facility for credit from Rs. 50 lakh to Rs. 5 crore per MSE borrower for retail trade activity.
• The extent of guarantee cover is
  • 80% for all credits/loans in the North East Region (NER) for credit facilities up to Rs. 50 lakh. 
  • 85 % for Women entrepreneurs / SC/ST entrepreneurs / Person with Disability (PwD)/ MSE promoted by Agniveers / MSEs situated in Aspirational District/ ZED certified MSEs 

How to apply:

Through Member Lending Institutions (Banks and NBFCs)

For detailed guidelines please visit https://www.cgtmse.in