No. CGTMSE is a credit guarantee scheme. The loan itself is given by the bank or NBFC; CGTMSE covers the lender against default.

What's the maximum loan under CGTMSE?

₹5 crore per borrower, subject to scheme guidelines and the lender's internal policies.

CGTMSE in Chennai — Eligibility, Funding & How to Apply | Info Tree

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Overview

This guide is tailored for applicants in Chennai. CGTMSE was set up by the Government of India and SIDBI to make credit flow to MSMEs without the traditional collateral barrier. Banks and NBFCs get a guarantee cover, and MSMEs get loans they otherwise couldn't.

Why it matters

Local support in Chennai: Infotree's consultants understand the local business ecosystem and help Chennai-based founders, MSMEs and entrepreneurs apply with confidence.

Key features

Guarantee coverage on loans up to ₹5 crore
No collateral required from the borrower
Coverage: 75–85% of the loan amount
Available to both manufacturing and service MSMEs
Member lending institutions include most PSU banks, private banks, NBFCs and SFBs

Eligibility

Must be a micro or small enterprise as per MSMED Act
New and existing MSMEs are eligible
Loan must be for eligible business activities (not for real estate or speculative purposes)

Benefits

Collateral-free working capital and term loans
Expanded access to credit for asset-light MSMEs
Reduced dependency on third-party guarantors

Required documents

✓Udyam registration
✓Business registration, PAN, GST
✓Project report / loan proposal
✓Bank statements and financials

Application process

1
Identify lender
Choose a CGTMSE member lending institution.
2
Apply for loan
Standard loan application with the bank, clearly requesting CGTMSE coverage.
3
Appraisal
Bank appraises the loan and applies for CGTMSE cover.
4
Guarantee fee
Annual guarantee fee paid by the borrower or lender depending on arrangement.
5
Disbursement
Loan disbursed under CGTMSE cover.

Common pitfalls

!Assuming CGTMSE is a loan — it's a guarantee scheme that enables a loan

FAQs

Yes. CGTMSE are open to eligible applicants based in Chennai. Infotree Services Private Limited helps Chennai startups, founders, MSMEs and entrepreneurs check eligibility, prepare the project report and pitch deck, and file the application end-to-end.

Conclusion

For businesses and entrepreneurs in Chennai, Infotree Services Private Limited can guide your CGTMSE application from eligibility to disbursement.

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CGTMSE in Chennai