Loans Under Credit Guarantee Scheme - CGTMSE

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Loans Under Credit Guarantee Scheme

The first generation of entrepreneurs face difficulties in accessing bank credit because of their inability to provide adequate collateral security for loans.
Loans under Credit Guarantee Scheme (CGTMSE) do not require mortgage of  any personal or business assets for obtaining the loan.
Collateral Free Loans, under this scheme, are provided to the entrpreneurs on the strength of their Business Plan, Credit history,  business experience and the management team's  ability to execute the business plan.
Credit worthiness and the character of the promotors are important criteria for collateral free loans.
Such loans are available to entrepreneurs or self employed professionals for the purposes of working capital, equipment financing, business expansion, business promotion or purchase of business assets.

Facilities Available under CGTMSE

Collateral free loan up to Rs.1 crore under CGTMSE scheme
Cash credit for meeting working capital requirement
Term Loan for business expansion and purchase of commercial assets

CGTMSE Loans are approved on the basis of:

  • Strength of your Business Plan ( Detailed Project Report)
  • Business Vintage
  • Quality of Management
  • Industry performance
  • Competition
  • Turnover Growth
  • Margins
  • Financial Ratios
  • Type of Business Entity ( Pvt. Ltd or LLP)

Documents Needed for CGTMSE Loans:

  1. PAN Card (Company /Firm/ individual)
  2. Identity Proof: Copy of Aadhaar Card/Passport/Voter's ID card/Pan Card/Driving License.
  3. Address Proof: Copy of Aadhaar Card/Passport/ Voter ID-Card/Driving License.
  4. Bank Statement (latest 6 months)
  5. Latest ITR along with computation of income, Balance sheet and Profit & Loss a/c for the last 2 years. Financials should be CA Certified /Audited.
  6. Proof of continuation (ITR/Trade license /Establishment /Sales Tax certificate)
  7. Other Mandatory Documents (Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)

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