CGTMSE Scheme

1. Credit Guarantee Fund Trust for Micro and Small Enterprises - CGTMSE The Government of India has launched a new credit scheme for Micro and Small businesses, which is named Credit Guarantee Fund Trust for Micro and Small enterprise (CGTMSE) amid the economic setbacks evolving due to lack of credit. Being a nation where new ideas are emerging from each and every corner, a brilliant potential of business execution, realising the scenario at the time where it is most helpful - the Government of India along with SIDBI has introduced this scheme which will uplift the micro and small enterprise industry. This scheme will basically credit the small businesses in their initial stage, the focus is to aid them on overcoming this hurdle of lack of financing when commencing with ideas and looking forward to executing them. The ​CGTMSE scheme​ has some eligibility criteria which should be taken into consideration for MSEs. A person owning an MSE is eligible to obtain a loan for future endeavours without having any collateral back-up like before.

2. Eligibility criteria for obtaining CGTMSE loan are as follows : ● A person who is applying must own a business which can be categorized into MSMEs ● Applicant’s business must have at least 3 years of continuous business. ● There is no restriction regarding the type of MSMEs, any type of manufacturing or service companies are eligible. ​As of now, all activities that come under the service sector as per the MSMED Act, 2006 are eligible for coverage under the scheme. ● New and existing Micro and Small Enterprises engaged in manufacturing or service, Agriculture, Self Help Groups (SHGs), Training Institutions etc. Features of the CGTMSE loan scheme are as follows : ● This scheme will help in maintaining an upward spiral of the small businesses. ● Lack of credit lending is a major cause of disruption, and this scheme looks comprehensively into lending facilities as well. ● A new initiative this scheme introduces is ‘hybrid security’ which ensures cover on the part of the credit facility, which is not covered into the collateral security ● The credit facility is based on the primary security and other financial assets. ● The scheme directs at making it easy for the borrower to obtain term loan as well as working capital utilities from the same organization. ● The extent of the guarantee cover is 80%. ● Micro and Small Enterprises operated and/or owned by women. ● In case of default, Trust settles the claim up to 75% of the amount in default of the credit facility extended by the lending institution for credit facilities up to Rs 200 lakh. This facility will boost up economic activity in the country, the criteria set or obtaining the CGTMSE loan has been kept for maximum convenience.

3. CGTMSE loan at Terkar capital If you want to apply for a CGTMSE loan and looking for a trustworthy firm, then you must consult Terkar capital group, along with fluent loan providing, they guide you throughout the process as well. They work on transparency before you apply for a loan they will explain to you what is CGTMSE loan and how the process will go forward, do’s and don'ts. They maintain a relationship which is aimed at providing you with efficient services and flawless satisfaction.