# # #

Credit Guarantee Fund Trust Scheme for Micro & Small Enterprises (CGTMSE)


To provide collateral free loans upto Rs. 200/- lacs to Micro & Small Enterprises.


The coverage of the Scheme is extended to all new and existing Micro and Small Enterprises (both in the Manufacturing Sector as well as in the Service Sector) as defined under MSMED Act, 2006 for which credit facility has been provided by the Bank without any collateral security and/ or third party guarantees. Any credit facility which has been sanctioned by the Bank with the maximum interest rate not more than 14% p.a. (including cost of guarantee cover) would be eligible for coverage under CGS.

Guarantee Fee

Composite all-in Guarantee Fee as under:

Credit Facility Annual Guarantee Fee (AGF) [% p.a.]
Women, Micro Enterprises and units in North East Region (incl. Sikkim) Others
Upto Rs.5 lakh 0.75 1.00
Above Rs.5 lakh and upto Rs.200 lakh 0.85 1.00

To promote and encourage small entrepreneurs , the Bank bears the upfront Guarantee fee/ Annual Service Fee on prescribed rates in all eligible cases availing credit limit upto Rs.5.0 lac

For the credit facilities sanctioned after April 01, 2016 ASF/AGF will be charged at differential rates depending upon NPA levels/ Claim Payout ratio of Bank.

Guarantee Period

  • Where WC alone is extended , the guarantee cover shall be for a period of 5 years or a block of 5 years , or for such period as may be specified by the trust in this behalf. Fresh upfront guarantee fee is to be paid after 5 years to keep guarantee coverage live.
  • The guarantee cover will commence from the date of payment of guarantee fee and shall run through the agreed tenure in respect of term credit/ composite credit i.e. in case where WC and TL both are sanctioned the agreed tenure in both the cases will be the repayment period of TL only. In other words in case where TL and WC both are sanctioned the Coverage period of WC may not necessarily run through 5 years. In such cases the WC limit be got renewed and fresh coverage thereof be obtained from CGTMSE by paying fresh upfront guarantee fee in order to keep Guarantee coverage live.

Extent of Guarantee : Quantum of credit to be covered and Guarantee Coverage

CategoryMaximum extent of Guarantee where credit facility is
Upto Rs.5 lakhAbove Rs.5 lakh upto Rs.50 lakhAbove Rs.50 lakh and upto Rs.200 lakh
Micro Enterprises85% of the amount in default subject to a maximum of Rs.4.25 lakh 75% of the amount in default subject to a maximum of Rs.37.50 lakh50% of amount in default subject to a maximum of Rs.100 lakh
Women Entrepreneur's/Units located in North East Region (including Sikkim) (other than credit facility upto Rs.5 lakh to micro enterprises) 80% of the amount in default subject to a maximum of Rs.40 lakh.
All other category of borrowers 75% of the amount in default subject to a maximum of Rs.37.50 lakh

Important point

Credit for retail trade, educational / training institutions and SHGs are not eligible for coverage.

For Hot Listing (Blocking)
ATM/Rupay Cards
For Balance Enquiry
(By Missed Call) 7039035156 (Toll Free)
All India Toll Free 1800-419-8300