Credit Guarantee Scheme (CGTMSE) 2023 – Online Registration, Eligiblility, Bank List

Credit Guarantee Scheme – In order to prove support to the entrepreneur, the Government of India launches various kinds of schemes. Through these schemes, financial support is provided to entrepreneurs in order to scale up their businesses. Recently the Government of India has launched a Credit Guarantee Scheme. Through this scheme, Bank credits will be made available to entrepreneurs. So that they can realize their dream of setting up units. This article covers all the important aspects of the CGTMSE scheme. You will get to know how you can take advantage of this scheme by going through this article. Other than that you will also get details regarding its objective, benefits, features, eligibility, required documents, application procedure, etc.

Credit Guarantee Scheme 2024

The Ministry of Micro Small and Medium Enterprises Government of India launched a Credit Guarantee Scheme in order to strengthen the credit delivery system and facilitate the flow of credit to the MSE sector. Through this scheme, bank credit will be provided without the hassles of collateral or third-party guarantees. Credit will be provided to the first-generation entrepreneurs so that they can realize their dream of setting up a unit of their own micro and small enterprises. In order to implement this scheme, the Government of India and SIDBI have set up a credit guarantee fund trust for micro and small enterprises.

PM Mudra Loan Yojana

Emergency Credit Line Guarantee Scheme (ECLGS) has provided much-needed additional credit to more than 130 lakh MSMEs. This has helped them mitigate the adverse impact of the pandemic. #AatmaNirbharBharatKaBudget pic.twitter.com/PALuWTOvAW — MyGovIndia (@mygovindia) February 8, 2022

This scheme has introduced a new hybrid product allowing guarantee cover for credits that are not covered by collateral securities. The MLIs will be allowed to obtain collateral security for the part of the credit facility and the remaining part of the credit facility will be covered under the scheme up to a maximum of 200 lakh. If the entrepreneur is unable to pay the loan then through this scheme the lender will be paid up to a certain amount of the losses incurred by him or her by the trust.

Credit Guarantee Scheme for Startups

Details Of Credit Guarantee Scheme

Name Of The Scheme Credit Guarantee Scheme
Launched By Government Of India
Beneficiary Citizens Of India
Objective To Provide Credit Guarantee Facility
Official Website https://www.cgtmse.in/
Year 2024

Objective Of Scheme

The main objective of the Credit Guarantee Scheme is to provide credit guarantee facilities to entrepreneurs so that they can scale up their business by taking loans. The Government of India is going to provide a credit guarantee against the loan of the entrepreneur. The benefit of this scheme is generally provided to first-generation entrepreneurs. If the entrepreneur fails to pay back the loan within the stipulated time then through this scheme the lender will be paid by the credit guarantee trust up to 50%, 75%, 80%, or 85% of the loss incurred by the lender. This scheme will ensure the easy flow of credit into the business. With the implementation of this scheme, entrepreneurs will get investment easily which will automatically contribute to increasing the GDP of the country.

Credit Guarantee Under Scheme

The maximum cap to any collateral third party guarantee for free credit facility extended by the Eligible institution to new as well as existing micro and small enterprises will be 200 lakh. The guarantee coverage will be made available to the selected NBFCS and small finance Bank. 50%, 75%, 80%, and 85% guarantee cover will be made available under the scheme for the sanctioned amount. The credit facility for credit up to Rs 5 lakh for micro-enterprises the extent of guarantee is 85%. The extent of guarantee cover is 50% up to a credit of Rs 10 lakh to 200 lakh per MSE borrowers in the retail trade activity.

The guarantee cover is 80% for micro and small enterprises that are operated or owned by women and all credit or loans in the northeast region for credit facility up to Rs 50 lakh. If there is any default then the trust settles the claim up to 75% of the amount. Interest on the loan will be applicable as per RBI guidelines.

PMEGP Yojana

Category Wise Credit Guarantee

Category Maximum extent of Guarantee where credit facility is
Upto 5 lakh Above 5 lakh upto 50 lakh Above 50 lakh upto 200 lakh
Micro Enterprises 85% of the amount in default subject to a maximum of 4.25 lakh 75% of the amount in default subject to a maximum of 37.50 lakh 75% of the amount in default subject to a maximum of 150 lakh
Women entrepreneurs/ Units located in North East Region (incl. Sikkim) (other than credit facility upto 5 lakh to micro enterprises) 80% of the amount in default subject to a maximum of 40 lakh 80% of the amount in default subject to a maximum of 40 lakh 75% of the amount in default subject to a maximum of 150 lakh
All other category of borrowers 75% of the amount in default subject to a maximum of 37.50 lakh The 75% of the amount in default subject to a maximum of 37.50 lakh 75% of the amount in default subject to a maximum of 150 lakh
Activity From 10 lakh upto 100 lakh
MSE Retail Trade 50% of the amount in default subject to a maximum of 50 lakh

Types Of Credit Guarantee Scheme

  • Credit guarantee scheme for banks- In order to fund the micro and small enterprises the Government of India has framed this scheme. Through this
  • scheme guarantees are provided in respect of credit facility by the lending institution to the borrowers in the micro and small enterprises
  • Credit guarantee scheme for NBFC- Through this scheme credit facilities are extended by the eligible NBFCS to the borrowers in the micro and small enterprises
  • Sub debt scheme- Through this scheme guarantee coverage is provided to the scheduled commercial bank in order to provide personal loan through the banks to the the promoters of the stressed MSME in order to infuse equity or sub debt or quasi equity etc
  • PM svanidhi- This scheme has been launched by the government of India in order to support urban Street vendors. Credit guarantee coverage is provided to the member lending institution in order to enable them to extend credit facilities to the street vendors in order to meet their working capital requirement

PM AJAY Yojana

Benefits And Features

  • The ministry of micro small and medium enterprises Government of India launched a Credit Guarantee Scheme in order to strengthen the credit delivery system and facilitate flow of credit to the MSE sector.
  • Through this scheme bank credit will be provided without hassles of collateral or third party guarantees.
  • Credit will be provided to the first generation entrepreneurs so that they can realise their dream of setting up a unit of their own micro and small enterprises.
  • In order to implement this scheme the Government of India and SIDBI have set up a credit guarantee fund trust for micro and small enterprises.
  • This scheme has introduced a new hybrid product allowing guarantee cover that is not covered by collateral securities.
  • The MLIs will be allowed to obtain collateral security for the part of the credit facility
  • The remaining part of the credit facility will be covered under the scheme up to a maximum of 200 lakh.
  • If the entrepreneur is unable to pay the loan then through this scheme the lender will be paid up to a certain amount of the losses incurred by him or her.

Beneficiaries

  • Manufacturing business
  • Services related business
  • Retail trade

Ineligibility Of Credit Guarantee Scheme

  • Educational/training institution
  • Self help groups
  • Agriculture

Operational Highlights Of Credit Guarantee Scheme

Guarantee approved during financial year 2020 ₹45,851 crore
Growth and coverage in terms of amount 52%
Significant growth of new products-retail and hybrid ₹16103 crore
Guarantees improved during financial year 2020 for 23 new registered NBFC ₹17,349 crore

Extent Of Guarantee Cover Of Credit Guarantee Scheme

  • Up to Rs 5 lakh micro-enterprises- 85%
  • Up to 50 lakh women entrepreneurs/units located in North eastern region including Sikkim- 80%
  • From 5 lakh to 200 lakh for other categories- 75%
  • Up to Rs 100 lakh MSE retail trade- 50%

Steps In Getting Coverage

  • Applicant registration
  • GST details
  • ITR upload
  • Data fill up
  • Select bank for processing
  • Provisional guarantee certificate

GDA Housing Scheme

Member Lending Institute Under Credit Guarantee Scheme

  • 12 public sector bank
  • 22 private sector banks
  • 51 RRB
  • 5 foreign banks
  • 9 Financial institutions
  • 28 NBFC
  • 6 SFB
  • 8 SUCB

Eligibility Criteria And Required Documents

  • Applicant must be permanent resident of India
  • The applicant must be first generation entrepreneur
  • Aadhar Card
  • Ration card
  • Income certificate
  • Passport size photograph
  • GST details
  • Income tax return
  • Bank account details
  • Mobile number
  • Email ID etc

Procedure To Apply Under Credit Guarantee Scheme

Guarantee
  • The home page will open before you
  • On the homepage you are required to click on register
Guarantee
  • You will be redirected to a new page
  • On this page again after click on register
Registration
  • After that you have to enter your full name, email id, mobile number and captcha code
  • Now you have to click on get OTP
  • After that you have to enter OTP into the OTP box
  • Now you have to click on register
  • After that you have to login by entering your login credentials
  • Now you have to enter your GST details
  • After that you have to to upload your income tax return
  • Now you have to enter the required details
  • After that you have to update your bank account details
  • Now you have to click on submit
  • By following this procedure you can apply under credit guarantee scheme

Procedure To Do Member Login

  • Go to the official website of credit guarantee scheme
  • The home page will open before you
  • Now you are required to click on members login
  • Following options will appear before you:-
    • Credit guarantee scheme for banks
    • Credit guarantee scheme for nbfc
    • Sub debt scheme
    • Pm SvaNidhi
  • You have to click on the option of your choice
  • A new page will appear before you
  • On this page you have to enter your login credentials
  • After that you have to click on login
  • By following this procedure you can 2 member login

Download Financial Report

  • Visit the official website of credit guarantee scheme
  • The home page will open before you
  • Now you have to click on financial information Option.
  • After that you have to click on financial report
Guarantee
  • A new page will appear before you
  • On this page you have to click on the option of your choice
  • Required details will be on your computer screen

Procedure To Calculate Guarantee

  • Go to the official website of credit guarantee scheme
  • The home page will open before you
  • On the homepage you are required to click on guarantee calculator
Calculate
  • You will be redirected to a new page
  • On this page you have to enter your pin code, state, district, City, gender and nature of activity
  • After that you have to click on submit
  • Required details will be on your computer screen

Procedure To View Contact Details

  • Visit the official website of credit guarantee scheme
  • The home page will open before you
  • Now you are required to click on contact us
  • A new page will appear before you
  • On this page you can view contact details

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