LFS Loans
Credit Guarantee Fund Trust for Micro and Small Enterprises enables collateral-free loans up to ₹5 crores for MSMEs. LFS Loans helps you get approved under CGTMSE in Hyderabad.
GOVERNMENT SCHEME
CGTMSE — Collateral-Free Business Loans up to ₹5 Crores
Credit Guarantee Fund Trust for Micro and Small Enterprises enables collateral-free loans up to ₹5 crores for MSMEs. LFS Loans helps you get approved under CGTMSE in Hyderabad.
What is CGTMSE?
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is a trust set up by the Government of India under the Ministry of MSME. It provides credit guarantee cover to banks and financial institutions for collateral-free loans to micro and small enterprises. The trust acts as a third-party guarantor, reducing the risk for lenders and making it significantly easier for MSMEs to access credit without pledging personal assets or property. This scheme has been instrumental in helping thousands of small businesses across India get the funding they need to start, grow, and expand.
Who Can Apply?
- Micro enterprises — investment up to ₹1 crore and turnover up to ₹5 crores
- Small enterprises — investment up to ₹10 crores and turnover up to ₹50 crores
- Existing businesses looking to expand or modernize
- New businesses setting up a new unit
- Businesses in manufacturing, services, or trading sectors
- Enterprises with valid Udyam/MSME registration
Key Benefits
- No collateral required — loans are guaranteed by CGTMSE
- Loans up to ₹5 crores for eligible enterprises
- Guarantee cover up to 85% of the loan amount
- Applicable to all scheduled commercial banks, RRBs, and cooperative banks
- Both working capital and term loans are covered
- Guarantee fee is typically borne by the lending bank, not the borrower
How to Apply
- Approach your bank with a detailed business proposal and project report
- Request the loan under the CGTMSE scheme — inform the bank you want collateral-free coverage
- The bank appraises your proposal and sanctions the loan if eligible
- CGTMSE provides the guarantee cover to the bank, securing the loan
- Loan disbursement is made as per the project schedule or working capital requirement
Documents Required
- Business registration certificate
- MSME/Udyam registration certificate
- Financial statements (balance sheet, P&L) for last 2-3 years (for existing businesses)
- Detailed project report with financial projections
- Bank statements for the last 12 months
- GST returns for the last 6 months
- Income tax returns for the last 2-3 years
How LFS Loans Can Help
LFS Loans provides complete guidance for CGTMSE applications in Hyderabad. We help with eligibility assessment, documentation preparation, and application submission. Contact us for a free consultation.
Frequently Asked Questions
What is CGTMSE?
CGTMSE stands for Credit Guarantee Fund Trust for Micro and Small Enterprises. It is a trust set up by the Government of India to provide credit guarantee cover to banks and financial institutions for collateral-free loans to micro and small enterprises.
What is the maximum loan amount under CGTMSE?
The maximum loan amount under CGTMSE is ₹5 crores. This includes both term loans and working capital facilities. The guarantee cover provided by CGTMSE is up to 85% of the loan amount for loans up to ₹200 lakhs.
Do I need to pay for the guarantee?
Yes, a guarantee fee is charged by CGTMSE, but it is typically borne by the lending bank or financial institution, not the borrower. The guarantee fee ranges from 0.375% to 1.5% per annum depending on the loan amount and category.
Which banks participate in CGTMSE?
All scheduled commercial banks, regional rural banks, cooperative banks, and NBFCs that are members of CGTMSE can provide loans under this scheme. This includes major banks like SBI, HDFC Bank, ICICI Bank, Bank of Baroda, and many others.
Can new businesses apply?
Yes, both new and existing micro and small enterprises can apply for loans under CGTMSE. New businesses can use the loan for setting up a new unit, while existing businesses can use it for expansion, modernization, or working capital requirements.
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