CGTMSE provides guarantee cover to eligible member lending institutions for qualifying credit facilities. The borrower normally approaches a lender, not CGTMSE, and the lender decides both credit sanction and whether the facility is placed under the guarantee. Guarantee cover does not remove the borrower repayment obligation.
Application path
1. Prepare a viable term-loan or working-capital proposal with KYC, registrations, financials, projections and end-use support.
2. Approach a CGTMSE member lending institution and ask whether the proposed facility and activity are eligible under current rules.
3. Complete the lender appraisal, including promoter, cash-flow and bureau checks.
4. Understand what primary security, collateral, hybrid security or guarantee structure the lender proposes.
5. Review the applicable guarantee fee and annual service fee and who bears them.
6. After sanction, the lender completes the guarantee process; retain sanction and repayment records.
7. Maintain account conduct and comply with reporting and covenants.
A claim by a lender under a guarantee does not cancel borrower liability.
Credit Guarantee Fund Trust for Micro and Small Enterprises
An introductory overview of credit-guarantee support for eligible micro and small enterprises.
Eligibility
The borrower, activity, credit facility, lender and security structure must satisfy current CGTMSE rules and the member lender credit policy. Exclusions and ceilings can change.
Potential benefits
May facilitate eligible collateral-free or partially secured lending by reducing a member lender credit risk, subject to coverage, fees and scheme conditions.
How to apply
Apply to a member lending institution with a complete proposal, ask for CGTMSE consideration, complete appraisal, understand fees and security, then comply with sanction and repayment terms.