What is the maximum loan amount under CGTMSE Collateral-Free Loan?

Under CGTMSE Collateral-Free Loan, the maximum loan amount is ₹500 lakh. Indicative interest rate is 10.5% per annum. Tenure up to 7 years. Eligibility depends on business turnover, GST filing history, and CIBIL score.

What documents are required for CGTMSE Collateral-Free Loan?

Typically required documents: GST registration certificate, last 2 years ITR, last 6 months bank statements, business proof (Udyam registration for MSME), PAN & Aadhaar, balance sheet / P&L, and collateral documents (if applicable).

How is MSME loan interest calculated?

MSME loan interest is calculated monthly on reducing balance. EMI = P × r × (1+r)^n / [(1+r)^n − 1] where P = loan principal, r = monthly rate, n = months. At 10.5%, EMI on ₹500 lakh for 7 years = ₹8,43,034/month.

MSME BUSINESS LOAN · CGTMSE COLLATERAL FREE

CGTMSE Collateral-Free Loan — EMI & Eligibility Calculator

Calculate EMI, total interest, and eligibility for CGTMSE Collateral-Free Loan up to ₹500 lakh at 10.5% indicative rate. Includes CGTMSE fee structure and repayment schedule.

✓ Up to ₹500L ✓ Rate ~10.5% ✓ Tenure 7 Yrs

Loan Amount (₹)

Maximum: ₹500 lakh under CGTMSE Collateral-Free Loan

Interest Rate (% p.a.)

Loan Tenure (Years)

CGTMSE Guarantee Fee (%)

Typically 0.75–2% p.a. on guaranteed amount. Paid upfront or rolled into loan.

Annual Business Turnover (₹ Lakh) — for eligibility

CGTMSE Collateral-Free Loan Summary

Monthly EMI

—

Total Interest

—

Total Repayment

—

Particulars	Value
Loan Amount	—
Interest Rate	—
Tenure	—
Monthly EMI	—
Total Interest	—
CGTMSE Guarantee Fee (one-time)	—
Total Cost of Loan	—
Eligibility Estimate
Business Turnover	—
Typical FOIR (EMI/Income) ≤ 50%	—
Eligibility	—

ClicZeo

Need this run, not just calculated?

ClicZeo builds the marketing, the tools and the systems a business like this runs on.

Talk to ClicZeo →

Frequently Asked Questions

Key eligibility criteria: (a) Valid MSME / Udyam registration, (b) GST registration and regular filing, (c) Business vintage of at least 2–3 years, (d) CIBIL score ≥ 700 preferred, (e) No existing NPA with any bank, (f) Annual turnover as per ITR. Individual lenders may have additional criteria.

No — CGTMSE (Credit Guarantee Fund Trust for MSEs) provides collateral-free credit guarantee to banks. Loans up to ₹500 lakh can be sanctioned without collateral. A one-time guarantee fee (typically 1.5–2% of loan amount) is paid to CGTMSE.

Apply through any Scheduled Commercial Bank, RRB (Regional Rural Bank), or NBFC that is a member lender under the respective scheme. For MUDRA loans, you can also apply via the Udyamimitra portal (udyamimitra.in). PSU banks like SBI, Bank of Baroda, and PNB are major lenders under these schemes.