Money for your businessguaranteeChecked Oct 2026
CGTMSE (collateral-free loans through a credit guarantee)
Not a loan but a guarantee. A government-backed trust guarantees your bank against default, so the bank can lend to a small business without asking for collateral.
Guarantee cover per borrower
Up to ₹10 crore of credit, from 1 April 2025
- For
- Any micro or small enterprise that has no property to pledge
- Who gets the guarantee
- The bank or NBFC, not you
- Who applies for it
- Your lender, when it sanctions the loan
What to know
- You still owe the whole loan. The guarantee protects the lender, not the borrower.
- A yearly guarantee fee is charged to the lender, and lenders often recover it from the borrower. Ask before you sign.
- The share of the loan that is covered differs by size of loan and type of borrower, and is higher for women entrepreneurs.
- Many Mudra and small term loans are already given under this cover.
How to apply
- Apply for a business loan as usual, with a project report and Udyam registration.
- If the bank asks for property as security, ask in writing whether the loan can be covered under CGTMSE instead.
- Ask what guarantee fee will be added to your cost.
Ask before you apply
We could not confirm these points. Terms change, so ask and get the answer in writing.
| Ask | Where to ask |
|---|---|
| What guarantee fee will I be charged, and is it yearly? | The bank's loan officer. Published fee tables disagree with each other. |
| Why is CGTMSE cover being refused for my loan? | The branch manager, then the bank's MSME grievance cell |
Other ways to raise money
- Mudra loanCollateral-free business loans in four slabs
- PMEGPLoan with subsidy for new units
- PM SVANidhiStreet vendors and hawkers in towns
- PM VishwakarmaPeople working with their hands in 18 traditional trades
- CMEGP (Maharashtra)Residents of Maharashtra starting a new unit
- Stand-Up IndiaSC, ST and women starting a new enterprise of some size
- Self-help group creditWomen in rural self-help groups
- Microfinance loanLow-income households with no collateral
- Gold loanAnyone with gold ornaments who needs money quickly
Sources
Scheme terms change by government order and differ between banks. Confirm everything with the bank or the scheme office before you commit money. Checked Oct 2026.