Breaking News
Home / SME-MSME / MSME / Without third party guarantee get loan up to 1 crore for your business

Without third party guarantee get loan up to 1 crore for your business

Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE)

CGMSE was launched by the Indian government to provide collateral/security free loans to micro and small enterprise sector. A Trust was established by Ministry of MSMEs and Small Industries Development Bank of India (SIDBI) to implement this scheme. 80% of the fund is contributed by the government and remaining 20% is provided by SIDBI.  

There are roughly 26 million micro and small enterprises (MSE) in India and it provides employment opportunities for more than 60 million people. The government understands that without a strong base of small industries, industrialization process will be tough to accelerate. Getting a loan for establishing a business remains a hectic jobs and many a times an idea didn’t get materialized due to this problem. However, this scheme provides an opportunity for the start-ups and entrepreneurs along with business units which are already established to turn your business idea into a reality.

Where to ask for the loan?

All the commercial banks (private/public/foreign) along with regional banks (sustainable viable- authorized by NABARD) will provide the loans.

Credit Facility

  • Both term loans and working capital facility up to INR 100 Lakh per borrowing unit without third party guarantee and collateral security.
  • If the credit facility exceeds INR 50 Lakh, it may still covered under the scheme but guarantee scheme will be only for loan up to INR 50 Lakh.
  • The loan can be made available from only one financial institution.
  • The already established units covered under the respective state schemes can also avail this scheme provided that they fulfil other criteria.
  • Small businesses in the retail sector are not eligible under this scheme.
  • Guarantee fee and annual service fees needs to be paid by the applicants.

Guarantee fee: 1.5% of the loan amount

Annual service fee: 0.75%

  • Only 75% of the sanctioned amount will covered under this scheme and in the case of enterprises owned by women, the guarantee cover is 80%.

What enterprises must have before applying under this scheme?

  • Business Plan
  • Know Your Customer (KYC) compliance
  • Financial statement for the existing businesses.
  • Pan Card.

How to avail?

Applicants can avail this loan from any authorized bank in India.

For more information, click here.

Read more:

Security Free Loans For Entrepreneurs Via PMM Y

Are You An Indian Startup? Check Your Financial Options!

About Sahitya


  1. Business loan upto 50 lac

  2. I want a loan of rs 100. Lacs to start a food processing unit, pls send me the details along with the required formalities.

  3. I wanna open a school. So I need a start-up loan upto 1 crore without gurrentee. how can I get it. what is the procedure.

  4. i want to start dairy farms

  5. Ritesh sanekar

    Required dairy project loan upto 1 crore

  6. I want to apen my own car showroom so i need startup loan up to 10crore

    • Hello Sir,
      We The Indian Iris aware the people about government policies and schemes and services in solar sector. To avail loan please visit
      Mudra Nodal Officer Contacts :
      Bank Nodal Officer :
      These contacts will guide you to avail loan through MUDRA Yojana

  7. Raimanshavali Hombal

    I want loan up to 1 crore plz help me

  8. I need a loans required for business development and amount is 600000.

  9. Required Restaurants project loan upto 1 crore

  10. Hi sir this is Suresh from Chennai
    I’m looking to develop my dad’s business and investment on other sources
    Please guide me for further


    Sir,I want to start poultry business, so I want 30L loan without colateral, so please send details for the loan,thanq sir.

  12. Kindly contact to this no. 8007584870

  13. I want to startup loan upto 1 crore to start a super market

  14. i want to open in house production of event management in fraipur

  15. I want to start my own call center services so I need financial assistance up to 1 crore…kindly reply ….

Leave a Reply

Your email address will not be published. Required fields are marked *