Credit Guarantee Fund Trust for Micro and Small Enterprises
CGTMSE provides collateral-free credit guarantee cover for loans to micro and small enterprises - enabling skill-infrastructure providers, training institutes, and small skilling businesses to access term loans and working capital without pledging assets.
Ministry of MSME, Govt of India + SIDBI
Up to 85% (for micro enterprises) / Up to 75% (for others)
₹5,00,00,000
1.00% – 2.00% p.a. (varies by loan size and category)
Official source: CGTMSE - official portal
How CGTMSE works.
Qualify
Training institute or skill business demonstrates MSE status and viability.
Apply
Lakshya structures the loan proposal and routes to an empanelled lender.
Guarantee
CGTMSE guarantee cover activated - no collateral required from the borrower.
Disburse
Funds released against invoices, milestones, or working-capital needs.
Monitor
Lakshya dashboards share operational and repayment data with the lender.
Why CGTMSE matters.
- Collateral-free and third-party guarantee-free loans for MSEs
- Coverage up to ₹5 crore for eligible enterprises
- Higher guarantee cover (85%) for micro enterprises, women, and NER units
- Covers term loans and working capital for training institutes and skill labs
- Enables equipment financing for simulators, labs, and infrastructure
- Lakshya routes eligible training-partner loans through CGTMSE-empanelled lenders
Who qualifies.
- 01Micro or small enterprise as defined under MSMED Act
- 02New or existing MSE with a viable business plan
- 03Loan facility up to ₹5 crore (fund-based or non-fund-based)
- 04Enterprise must not be in the defaulter list of any lender