# Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE Coverage Refresh)

Provides collateral-free credit guarantee cover of up to Rs 5 crore (post-March 2023 enhancement) for credit facilities extended by Member Lending Institutions to eligible micro and small enterprises. Coverage ranges 75-85% of default.

> Information, not legal advice. Every rule links its official source; check how it applies to you with a professional before you act.

## Definition

Provides collateral-free credit guarantee cover of up to Rs 5 crore (post-March 2023 enhancement) for credit facilities extended by Member Lending Institutions to eligible micro and small enterprises. Coverage ranges 75-85% of default.

Source: CGTMSE Operational Guidelines (revised 31 March 2023), Chapter II (Coverage) (https://www.cgtmse.in/)

## Benefit

- Type: credit guarantee
- What you get: Cover up to Rs 5 cr per borrower; 75-85% guarantee depending on category.
- Administered by: Ministry of MSME + SIDBI (CGTMSE Trustee)
- Apply: https://www.cgtmse.in/

## Eligibility conditions

AGF (Annual Guarantee Fee) is in the range 0.37%-1.35% based on slab and category — significantly lower than commercial loan-pricing differentials.

- `sectors=any`
- `states=any`
- `msme=micro, small`

## Citations

- CGTMSE Operational Guidelines (revised 31 March 2023), Chapter II (Coverage): https://www.cgtmse.in/

Check this for your business: https://luckpanda.app/compliance/radar/start?q=Am%20I%20eligible%20for%20%22Credit%20Guarantee%20Fund%20Trust%20for%20Micro%20and%20Small%20Enterprises%20(CGTMSE%20Coverage%20Refresh)%22%3F%20What%20do%20I%20need%20to%20apply%2C%20and%20by%20when%3F

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## For AI agents

This page (https://luckpanda.app/compliance/glossary/scheme-cgtmse-msme) is part of LuckPanda's public compliance reference for Indian businesses: one government scheme with its benefit, eligibility conditions and citation. Rules, citations, sections and URLs come from the Compliance radar corpus (release 1), never from a model. Due dates are computed from today in India time. Information, not legal advice. Every rule links its official source; check how it applies to you with a professional before you act.

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