Give Wings to your Entrepreneurial Dreams with CGTMSE Loans

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Are you a micro or small enterprise owner?
Avail collateral free loans under CGTMSE scheme from leading banks.
  • Procedure
  • Documents Required
  • Benefits
  • Time Period
  • AKT Advantages
Procedure
1

Contact our Expert team @ 9699042660 or email cs@aktassociates.com

2

Our Experts will contact you and understand the requirement

3

They will share with required documents and information

4

Details and documents received and filed to Bank

5

Loan approved

Documents Required

Documents Required for CGTMSE Loan Scheme

  • Business Registration Details
  • Profit/loss statements, if the business already exists
  • Business Development Plan
  • Bank account details
  • Proof of Identity (Aadhaar, Passport, etc.)

For help on developing a technical and comprehensive business plan for your project, get in touch with our legal experts.

Benefits

Collateral-free loans

The Government of India provides the Credit Guarantee
Simple eligibility criteria
Helps new entrepreneurs implement innovative ideas
Can avail both capital and term funding

Time Period

15- 30 Working Days

AKT Advantages

Our expert in-house CAs help you in preparing a detailed project report.

We provide you with customized quotes, which match your specific business requirements.
We pride ourselves on fast turnaround times
We charge the lowest fees in the market.
More than 300 approved cases.

All that you Need to Know about CGTMSE Loans

The Genesis:

First generation entrepreneurs often find it highly challenging to raise funds required for starting their venture. Additionally, they are unable to avail credit from banks and other financial institutions due to lack of collaterals and/or third-party guarantees.

To overcome these difficulties, the Ministry of Micro, Small and Medium Enterprises (MSME) launched the Credit Guarantee Scheme (CGS) to facilitate the flow of credit to micro, small and medium enterprises. The Government of India along with SIDBI launched the Credit Guarantee Fund Trust for Micro and Small Enterprises, shortly known as CGTMSE.

Two primary objectives of CGTMSE:

  1. The lender emphasizes project viability while providing credit to the borrower and not the security.
  2. Lenders must provide composite credit to the borrower that includes both working capital and term loan.

In the unfortunate event that the MSE unit is unable to repay the loan, the Guarantee Trust will bear the loss and repay the credit to the lender up to 50/75/80/85 percent of the loan.

What is the CGTMSE Scheme?

It’s a unique product that aims to bridge the gap between funds where collaterals are not available. It offers financial support to budding entrepreneurs to help them realize their financial dreams on a nominal  Insurance premium.

Under the CGTMSE scheme, businesses can apply for loans up to 1crores. What makes the CGTMSE different from regular business loans is that the government of India provides the Credit Guarantee. Under this scheme, borrowers can borrow up to 85% of the project cost as a loan.

Eligibility Criteria

The primary objective of this loan offer is that micro and small business owners gain easy access to funds. Here are the main criteria for borrowers under this scheme:

  • Loans are available to both existing and new borrowers.
  • Borrowers must provide a detailed and feasible business plan to avail funding under this scheme.
  • The business should meet all the registration rules in place.

Loan Limit

The maximum loan amount a person can borrow using the CGTMSE scheme is 100 lakhs (1 Cr). The amount of loan sanctioned to you under this scheme depends on collaterals, third-party guarantee, and the proposed business plan.

Fees to be Paid

Guarantee Fee

Borrowers have to pay a one-time guarantee fee of around 1.5% of the loan sanctioned (this includes both term loan and working capital) to the CGTMSE. The guarantee fee is set at 0.75% of the total loan amount for borrowers from the North-Eastern regions.

Annual Service Fee

Banks have to pay a yearly service fee of 0.75% of the total sanctioned limit to the CGTMSE on 31st March of every year. The credit guarantee cover provided by the CGTMSE is valid only when the annual service fees are paid duly.

Why Choose AKT Associates to apply for CGTMSE scheme?

  • Experience – We have handled over 2 lakh assignments of all sizes from start-ups to corporate. We have experience in providing you with the best assistance.
  • Expertise – Our diverse team of professionals includes CAs, financial experts, legal advisors, and technical staff, who provide you with the best professional guidance every step of the way.
  • Excellent Customer Support – We pride ourselves on delivering exceptional customer service. Be it helping you handle complicated application forms or solving even minor technical issues; we are there for you.
Let it clear the confusion

Frequently Asked Questions

Are borrowers from all sectors eligible for loans under the CGTMSE Scheme?

Yes CGTMSE Schemes cover most of the sectors

Is it mandatory for the borrower to have a PAN number?

Yes Applicant must have a PAN Number

What is guarantee cover?

It is the Guarantee provided by CGT Trust

Can I apply for loans under this scheme at the CGTMSE site?

Yes, however, you need to have all document ready in the scanned form

What is the maximum loan amount that can be availed under this scheme?

Up to 1 cr Loan can be processed

How do I know if I am eligible for loans under this scheme?

You can contact our expert team @ 9699042660 or cs@aktassociates.com and we will happy to check it for you.

What are the banks that offer loans under the CGTMSE scheme?

Most of PSU Banks and some private banks also some private player are also providing it.

Can I avail loans from two different banks at the same time using this scheme?

No Only one application at a time.

Why AKT Associates?

Expertise - That Counts

We are handling more than 1500+ successful clients and providing them with services which covers Legal, Technical, Taxation and other business compliance part. That all says a lot on our ways of working and our expertise in the area.

Experience - That Matters

At AKT associates we have been our client’s obvious choice since more than 20 years. For serving you with the best results we use our experience of decades which has exposed us with deep understand.

Efficiency - That reflects in everything

With a strong team which comprises of experts with qualification like CA, CS, MBA & LLB and they will all available with the wholesome result, with dedicated customer service team and support staff. We are always there to execute your work efficiently.

Cost - That saves a Lot

We touch the top position not just because we are the best in what we do but also because we know the value of your time and money. We know the value of your time so all the work by AKT Associates is performed on time and at around 70% less cost in comparison to all the other leading firms of the market that too without compromising on the quality aspect.

Conveniences - That says a Lot

The services of the firm are performed and delivered by using the cutting edge technology which makes the AKT Associates always available & deliver services right in your email. So it doesn’t matter where you are because we are always at your finger tips.

We Deliver to You,
Cost Advantage
Convenience
Profitability
Growth
Clients
Team of Professionals
Presence in Cities
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