CGTMSE (SIDBI) - Collateral-Free Loan

The Credit Guarantee Fund Trust for Micro and Small Enterprises provides collateral-free loans up to ₹5 Cr, guaranteed by CGTMSE and offered through major banks. Because the guarantee cover sits with the lending bank rather than the borrower, the startup's own creditworthiness still has to satisfy the bank's normal underwriting process — the CIBIL score above 650 and two years of profitable operations that this scheme's eligibility lists are effectively what banks screen for before routing a loan through CGTMSE cover at all. It works alongside Udyam MSME registration, which is a prerequisite the trust checks before a bank can claim guarantee coverage in the event of default.