Give Wings to your Entrepreneurial Dreams with CGTMSE Loans
Step 1: Contact our Expert team @ 9699042660 or email [email protected]
Step 2: Our Experts will contact you and understand the requirement
Step 3: They will share with required documents and information
Step 4: Details and documents received and filed to Bank
Step 5: Loan approved
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.
Salient Features of CGTMSE Loans:
- 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
- 15- 30 Working Days
- 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
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:
- The lender emphasizes project viability while providing credit to the borrower and not the security.
- 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.
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.
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
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
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 [email protected] 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.