What is PMEGP and who is eligible?

PMEGP (Prime Minister's Employment Generation Programme) provides subsidies of 15%–35% for new manufacturing and service units. Any Indian citizen above 18 years with a business plan can apply. NaavBharat provides end-to-end PMEGP application support.

What is the CGTMSE collateral requirement?

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) provides collateral-free credit guarantees up to ₹5 Crore for MSMEs with Udyam registration. No collateral or third-party guarantee is required.

What are the Mudra loan limits?

Mudra loans are offered in four tiers: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 Lakh), Tarun (₹5 Lakh to ₹10 Lakh), and Tarun Plus (₹10 Lakh to ₹20 Lakh). All tiers are collateral-free.

How does NaavBharat charge for its services?

NaavBharat operates on a success-linked advisory model with zero upfront fees. We charge only upon successful scheme disbursement. The initial eligibility consultation is completely free.

How long does PMEGP application processing take?

With complete documentation, PMEGP applications typically take 45–90 days from submission to sanction. NaavBharat's 98.6% approval rate is achieved through thorough pre-submission document review and bank coordination.

What documents are needed for CGTMSE?

CGTMSE requires Udyam Registration Certificate, business plan or project report, last 2 years ITR (if applicable), bank statements, KYC documents, and the loan application from a member lending institution (MLI).

Does NaavBharat help with GST registration and Udyam certification?

Yes. NaavBharat provides complete Certification services including GST registration, Udyam/MSME certification, FSSAI license, IEC (Import Export Code), trademark registration, and company incorporation for Pvt Ltd and LLP structures.

CGTMSE Guide2026 Updated

CGTMSE — The Collateral-Free Loan Guarantee Every MSME Needs to Know

NaavBharat Advisory TeamMay 20265 min read

Collateral is the #1 reason banks reject MSME loan applications. CGTMSE (Credit Guarantee Fund Trust for Micro & Small Enterprises) solves exactly this problem — it guarantees your loan to the bank so they don't need your property. Here's a complete, jargon-free guide to how it works.

₹5 Crore

Max Coverage

75–85%

Guarantee %

200+

Partner Banks

78L+

Guarantees Issued

How CGTMSE Actually Works — Step by Step

You (Borrower)

Apply for an MSME loan at any MLI (bank/NBFC) with your Udyam certificate and business plan.

Bank (MLI)

Bank appraises your loan, sanctions it, and registers it with CGTMSE by paying an Annual Guarantee Fee on your behalf (recovered from you).

CGTMSE Trust

Issues a guarantee certificate covering 75%–85% of the loan amount. Bank no longer needs collateral from you.

You (Borrower)

Receive the full loan amount without pledging any property or personal assets.

In case of default

The bank claims from CGTMSE Trust. You still owe the bank, but you were never asked for collateral upfront.

Annual Guarantee Fee (AGF)

The AGF is not your cost — the bank pays it to CGTMSE. The bank typically recovers this from you by building it into your EMI or charging it as a processing fee.

Loan Range

AGF Rate

Coverage

Notes

Up to ₹5 Lakh

0.37% p.a.

85% (Micro)

Lowest fee slab — Micro enterprises

₹5 Lakh – ₹50 Lakh

0.55% – 1.00% p.a.

75%–85%

Varies by category

₹50 Lakh – ₹2 Crore

1.20% p.a.

75%

Standard rate

₹2 Crore – ₹5 Crore

1.80% p.a.

75%

Higher loan ceiling

✅ Who is Eligible

All Micro and Small Enterprises with valid Udyam Registration
Manufacturing, service, and trade sectors all covered
New enterprises and existing MSMEs both eligible
Individual proprietors, partnerships, LLPs, Pvt Ltd companies
SHGs and co-operative societies registered under relevant acts
Retail trade eligible up to ₹1 Crore; above that, manufacturing/service only

❌ Not Eligible

Medium and Large enterprises (only Micro and Small covered)
Self Help Groups without formal registration
Businesses already in default with any bank or financial institution
Farm sector and agricultural activities (agri-allied activities are eligible)
Loans already secured by collateral — CGTMSE is for collateral-FREE loans only

Which Banks Offer CGTMSE Coverage?

State Bank of IndiaBank of BarodaPunjab National BankCanara BankUnion Bank of IndiaHDFC BankICICI BankAxis BankSIDBINABARDAll Regional Rural BanksMost NBFCs & MFIs

Get CGTMSE-backed funding for your MSME

NaavBharat identifies the best MLI for your profile and facilitates complete CGTMSE-backed loan processing. Zero upfront fees.

Free CGTMSE Eligibility Check

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