No. It is a guarantee your bank takes on your loan, so the bank can lend without collateral. You apply for the loan at the bank and ask for CGTMSE cover.

What is the largest loan CGTMSE covers?

₹10 crore per borrower, for guarantees approved from 1 April 2025 (it was ₹5 crore before).

How much of the loan does the guarantee cover?

Women entrepreneurs, and units promoted by Agniveers: 90%; Micro enterprises, loans up to ₹5 lakh: 85%; SC or ST entrepreneurs, persons with disability, transgender entrepreneurs, units in aspirational districts, ZED-certified units: 85%; North East, Jammu and Kashmir and Ladakh, loans up to ₹50 lakh: 80%; Everyone else: 75%. Districts the RBI names as credit-deficient get 5% more.

What is the CGTMSE fee?

A yearly fee on the loan amount. The standard rates are 0.37% up to ₹10 lakh; 0.55% above ₹10 lakh to ₹50 lakh; 0.60% above ₹50 lakh to ₹1 crore; 0.85% above ₹1 crore to ₹2 crore; 1.00% above ₹2 crore to ₹5 crore; 1.10% above ₹5 crore to ₹8 crore; 1.20% above ₹8 crore to ₹10 crore. The lender's risk rating moves the actual rate up or down.

Can a new business get a CGTMSE-covered loan?

Yes. New and existing micro and small enterprises are both eligible.

Government loan schemes

CGTMSE loan without collateral

Not a loan itself: a government-backed guarantee that lets a bank lend to a micro or small enterprise without collateral or a third-party guarantee, for loans up to ₹10 crore.

Check if you qualify, free ↓

Largest guaranteed loan: ₹10 crore
Collateral: None, and no third-party guarantor
Cover, women entrepreneurs: 90% of the loan
Cover, most others: 75% of the loan
Yearly fee (standard): 0.37% to 1.20%, by loan size

Who can apply

New and existing micro and small enterprises in manufacturing, services, and retail or wholesale trade.
Educational and training institutions.
Loans up to ₹10 crore from a bank or NBFC that is a CGTMSE member lending institution.

Not open to

Loans above ₹10 crore.
Businesses above the small-enterprise size (₹100 crore turnover).
Some agri-allied activities. Ask the lender whether yours counts as a service.

What you get

The bank lends without asking for collateral or a guarantor, because the trust covers most of its loss if the loan goes bad: 75% of the loan for most borrowers and up to 90% for some (see the questions below). A yearly guarantee fee is charged on the loan; women, SC, ST, divyang, Agniveer and transgender entrepreneurs get 10% off it.

Examples

What the scheme rules say for a few typical cases. The checker below runs the same rules on yours.

₹25 lakh for a new restaurantOpen
Yes: it is how a bank lends to you without collateral. Your bank can lend without collateral or a third-party guarantee; women-led businesses get higher cover.
₹2 crore working capital for a wholesale businessOpen
Yes: it is how a bank lends to you without collateral. Your bank can lend without collateral or a third-party guarantee; women-led businesses get higher cover.
₹10 lakh for a dairy unitDepends
Depends on the activity.
₹12 crore for a factory expansionNot open
Guarantees stop at ₹10 crore.

How to apply

Get your Udyam registration. Most lenders ask for it.
Apply for the loan at a bank or NBFC that is a CGTMSE member lending institution, and ask for it to be covered under CGTMSE.
The lender applies for the guarantee. You do not apply to CGTMSE yourself.

Check if you qualify

A few questions about you and the business. You will see CGTMSE loan without collateral first, and the other schemes beside it.

Questions people ask

Is CGTMSE a loan?: No. It is a guarantee your bank takes on your loan, so the bank can lend without collateral. You apply for the loan at the bank and ask for CGTMSE cover.
What is the largest loan CGTMSE covers?: ₹10 crore per borrower, for guarantees approved from 1 April 2025 (it was ₹5 crore before).
How much of the loan does the guarantee cover?: Women entrepreneurs, and units promoted by Agniveers: 90%; Micro enterprises, loans up to ₹5 lakh: 85%; SC or ST entrepreneurs, persons with disability, transgender entrepreneurs, units in aspirational districts, ZED-certified units: 85%; North East, Jammu and Kashmir and Ladakh, loans up to ₹50 lakh: 80%; Everyone else: 75%. Districts the RBI names as credit-deficient get 5% more.
What is the CGTMSE fee?: A yearly fee on the loan amount. The standard rates are 0.37% up to ₹10 lakh; 0.55% above ₹10 lakh to ₹50 lakh; 0.60% above ₹50 lakh to ₹1 crore; 0.85% above ₹1 crore to ₹2 crore; 1.00% above ₹2 crore to ₹5 crore; 1.10% above ₹5 crore to ₹8 crore; 1.20% above ₹8 crore to ₹10 crore. The lender's risk rating moves the actual rate up or down.
Can a new business get a CGTMSE-covered loan?: Yes. New and existing micro and small enterprises are both eligible.

From the scheme's official page, checked on 9 November 2026. Rules change; the bank still decides each loan.