Credit Guarantee Fund Trust for Micro and Small Enterprises: Who Qualifies and What You Get
Learn how this government guarantee helps small business owners secure bank loans without needing to provide collateral.
This scheme provides a government guarantee to help small business owners secure loans from banks without having to offer personal assets as security.
Who it's for
This is designed for borrowers who need to take out a bank loan but do not have collateral to provide to the lender.
What you get
The government provides a guarantee on your bank loan. This means the trust acts as a backstop, reducing the risk for the bank so they are more likely to approve your credit.
What it costs you
There is a fee involved to cover the guarantee, which you must pay to the trust. You should check with your lender regarding the specific amount of this fee.
The catch to know
A loan is not automatically covered just because you ask for it. Your bank must be officially registered under this scheme for the guarantee to apply.
How to apply
- Approach your bank to discuss your loan requirements.
- Confirm with the bank that they are registered under this specific guarantee scheme.
- Complete the necessary loan application and paperwork required by your lender.
- Visit the official portal for more details: https://www.cgtmse.in