Glossary
CGTMSE
What it means
The Credit Guarantee Fund Trust for Micro and Small Enterprises guarantees a large share of eligible loans made by banks and NBFCs to micro and small businesses, so the lender does not need property or other collateral. Coverage limits have been raised repeatedly and now extend to several crores.
The borrower pays a small annual guarantee fee. Banks are the main channel; a strong business file with Udyam registration is the starting point.
Where it applies
Business Loan
Unsecured business loans from ₹2 lakh to ₹1 crore for proprietors, partnerships and companies, at rates from about 14% p.a., with tenures up to 5 years and minimal collateral requirements.
- Rate from
- 14.00% p.a.
- Up to
- ₹1 Cr
Machinery and Equipment Loan
Loans for new and used industrial machinery, medical and construction equipment, from ₹5 lakh to ₹5 crore, at rates from about 10.5% p.a., funding up to 90% of invoice value with tenures up to 7 years.
- Rate from
- 10.50% p.a.
- Up to
- ₹5 Cr
More terms
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