Credit Guarantee Scheme and Guidlines


The Credit Guarantee Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Scheme for Micro and Small Enterprises. 

Eligibility/ Applicability :

New as well as existing Micro & Small Enterprises. Guarantee coverage ranges from 85% (Micro Enterprise up to Rs 5 lakh ) to 75% (others). 50% coverage is for Retail Activity

Nature of Assistance :

The credit facilities which are eligible to be covered both term loans and/or working capital for collateral free loan up to a limit of Rs. 200 lakh is available for individual MSE on payment of guarantee fee to bank by the MSE.

How to Apply :

MSE meeting the eligibility criteria may approach eligible Banks / Financial Institutions/ Regional Rural Banks/NBFCs. .

Contact :

Loan lending bank branch, CEO, CGTMSE, SIDBI, Swavalamban Bhavan, C-11, G-Block, BKC, Bandra (East), Mumbai 400051. The guidelines of this scheme can also be downloaded from the following URLs : Click