Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
CGTMSE was established in 2000 jointly by the Ministry of MSME and SIDBI (Small Industries Development Bank of India) to facilitate collateral-free credit to micro and small enterprises. It provides credit guarantee cover to eligible lending institutions — enabling banks to lend without requiring borrowers to pledge physical assets or third-party guarantees. The guarantee cover reduces the risk for lenders, encouraging them to extend credit to the often asset-poor MSME sector.
- Established: August 30, 2000; operational from January 1, 2000
- Set up by: Ministry of MSME + SIDBI; corpus contributed in ratio of 4:1 (GoI : SIDBI)
- Eligible lenders: Scheduled commercial banks (PSBs, private, foreign), select RRBs, NSIC, NEDFi, SIDBI, select SFBs, NBFCs
- Guarantee coverage: 85% for micro enterprises (loans up to Rs. 5 lakh); 75% for loans between Rs. 5 lakh and Rs. 500 lakh
- Maximum loan covered under guarantee: Up to Rs. 5 crore
- Milestone: Approved guarantees worth Rs. 1 lakh crore during FY2022-23
● Tracked since February 06, 2026 · last seen February 09, 2026 · updates as the daily brief publishes
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