Revamped CGTMSE Scheme


    In News

    • CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) has been provided with an additional corpus support of ?9,000 crore in the Union Budget for FY 2023-24 to revamp its Scheme to provide guarantee for additional ?2 lakh crore to Micro & Small Enterprises.

    More changes in CGTMSE

    • The modifications included reduction in guarantee fees for loans up to ?1 crore by 50% bringing the minimum guarantee fee to the level of 0.37% pa only.
    • Another major change announced was raising of ceiling for guarantee from ?2 crore to ? 5 crore
    • Enhancing the threshold limit for claim settlement without initiation of legal action to ?10 lakh.

    What is CGTMSE?

    • CGTMSE is jointly set up by the Ministry of Micro, Small & Medium Enterprises (MSME), Government of India and Small Industries Development Bank of India (SIDBI) to catalyze flow of institutional credit to Micro & Small Enterprises (MSEs).
    • Established in 2000, CGTMSE has been instrumental in providing:

    Guarantee cover to collateral and/or third party guarantee free credit facilities 

    • CGTMSE has created a new landmark by touching the milestone figure of approving guarantees worth `1 lakh crore during FY 2022 – 23.





    Manufacturing Enterprises and Enterprises rendering Services


    Investment < 1 crore and Turnover <5 crore


    Investment < 10 crore and Turnover <50 crore

    Investment < 20 crore and Turnover <250 crore

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