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.

What is CGTMSE and how does it help MSMEs?

CGTMSE is a government trust that guarantees your loan to the bank — meaning the bank doesn't need collateral from you. If you default, the Trust pays the bank. This makes banks comfortable lending to MSMEs without asking for property or assets as security.

What is the annual CGTMSE guarantee fee?

The annual guarantee fee (AGF) ranges from 0.37% to 2% of the loan amount per year, depending on loan size and category. Women, NE/Hilly Region applicants, and Micro enterprises get concessional rates. This fee is typically built into your EMI by the bank.

Can I get CGTMSE on a Mudra loan?

Yes. CGTMSE coverage is available on Mudra loans under the Kishore and Tarun categories. It provides an additional layer of protection making it easier for you to access credit.

Does CGTMSE cover working capital loans?

Yes. CGTMSE covers both term loans and working capital loans (fund-based and non-fund-based facilities) up to ₹5 Crore.

Which banks offer CGTMSE coverage?

All scheduled commercial banks, RRBs, SFBs, NBFCs, and MFIs registered as Member Lending Institutions (MLIs) with CGTMSE offer this coverage. Over 200 MLIs are registered, including SBI, HDFC, ICICI, Bank of Baroda, and all major public sector banks.

Zero CollateralUp to ₹5 CrorePan-India

Government Scheme Guide

What is CGTMSE?Credit Guarantee Fund Trust for Micro & Small Enterprises

Collateral-Free Business Loans up to ₹5 Crore

₹5 Crore

Max Coverage

Collateral Required

200+

MLI Partner Banks

5–7 Yrs

Guarantee Tenure

Overview

CGTMSE — Explained

CGTMSE (Credit Guarantee Fund Trust for Micro & Small Enterprises) is a joint initiative of the Government of India and SIDBI. It provides credit guarantee cover to banks and financial institutions enabling them to extend collateral-free loans to MSMEs.

Under CGTMSE, if your business defaults on the loan, the Trust compensates the bank up to 75%–85% of the outstanding amount. This dramatically lowers the bank's risk, making them far more willing to lend to MSMEs without collateral.

The guarantee is available for term loans and working capital facilities up to ₹5 Crore per borrower. As of 2024, over 78 lakh guarantees worth ₹6.5 lakh crore have been issued.

Eligibility

Who Can Apply?

All Micro and Small Enterprises with Udyam Registration
Manufacturing, service, and trade enterprises all eligible
Both new and existing enterprises eligible
Loan from a Member Lending Institution (MLI) is required
No collateral pledged against the loan being guaranteed
Retail trade limited to loans up to ₹1 Crore

Documents

Documents Required

Udyam Registration Certificate

Mandatory — must be active and valid

Aadhaar Card & PAN Card

Proprietor / all directors / partners

Business Plan / Project Report

NaavBharat prepares DPR for you

Last 2–3 Years ITR

For existing businesses; new units exempt

Bank Statements (12 months)

Business account statements

Loan Application to MLI

Submitted to the bank/NBFC first

Business Vintage Proof

GST returns, sales invoices, licences

Frequently Asked Questions

CGTMSE — FAQs

Free Consultation

Want Help Applying for CGTMSE?

NaavBharat offers a free eligibility check — our advisors match your business profile to the highest-value applicable schemes at no upfront cost.

Check My Eligibility — Free