Credit Guarantee Fund Trust

Credit Guarantee Fund Trust for Micro and Small Businesses

The Ministry of Micro, Small and Medium Enterprises (MSME) and Small Industries Development Bank of India (SIDBI) established a trust named Credit Guarantee Fund Trust to provide term loans and/or working capital for Micro and Small Businesses in India.

Aim:  Ensure easy availability of collateral free loans at reasonable interest rates for Micro and Small Business Enterprises in a timely manner.

Advantages of the Scheme

  1. Project launched by Government of India to help Micro and Small Business Enterprises.
  2. Both existing and new businesses are eligible under the scheme.
  3. Provides both term loans and/or working capital for business units up to Rs.1 crore.
  4. No collateral security or third party guarantee required for loan approval.
  5. In case of loan default, rehabilitation assistance available.
  6. This scheme is available through Banks and/or Financial Institutions who have entered into an agreement with the Trust.

Non-Eligibility: Any facility where the type of activity is not manufacturing, services and retail trade and given on the basis of third party guarantee is non-eligible for credit under the scheme.

Loan Amount: Term loans and/or working capital facility from 10 lakhs up to 100 lakhs per borrowing unit.

Website: www.cgtmse.in

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