What CGTMSE does
CGTMSE was set up by the Government of India and SIDBI. It does not lend. When a bank, NBFC or small finance bank gives a micro or small enterprise a loan without collateral or a third-party guarantee, CGTMSE guarantees a large part of it. If the business cannot repay, the trust pays the lender its share, so lenders are more willing to lend on cash flow alone.
How much is covered
The Union Budget 2025-26 raised the guarantee cover from ₹5 crore to ₹10 crore per borrower, from 1 April 2025. Both term loans and working capital are covered.
Who is covered
- New and existing micro and small enterprises in manufacturing and services, including retail trade
- Proprietorships, partnerships, LLPs and companies
- Not covered: agriculture, self-help groups and educational institutions
How to get a CGTMSE-covered loan
You do not apply to CGTMSE yourself. Ask your lender for a loan under CGTMSE. The lender checks your business, decides the loan and applies for the guarantee.
- Keep your Udyam registration ready: lenders use it to confirm you are a micro or small enterprise (how to register).
- The lender pays an annual guarantee fee to the trust and may pass it on to you. Ask about it and check the Key Fact Statement.
CGTMSE and Oxon
Many unsecured business loans from our lending partners are given to micro and small enterprises; whether a particular loan is covered under CGTMSE is the lender's decision. Read our CGTMSE guide or check your business loan eligibility.
Oxon Fintech is not a government agency and does not take applications for this scheme. Apply on the official portal or at a bank branch, and be careful of anyone who asks for money to get a scheme loan approved. Scheme rules change; check the official site before you apply.