Collateral-free credit, up to ₹10 crore, without staking your assets.
Avenore helps micro and small enterprises secure CGTMSE-backed loans — no property, no third-party guarantee, no risk to what you've already built. We handle the paperwork, the bank coordination, and the compliance end to end.
Check your CGTMSE eligibility
Share a few details about your business and loan requirement. Our compliance team will get back to you within one business day.
Thank you — we've received your enquiry
A member of the Avenore compliance team will reach out within one business day to walk you through your CGTMSE eligibility.
What CGTMSE actually does for your business
The Credit Guarantee Fund Trust for Micro and Small Enterprises is a joint initiative of the Ministry of MSME and SIDBI, built to solve one specific problem: banks hesitate to lend to small businesses without security, and small businesses rarely have property or gold to pledge.
Under CGTMSE, the Trust stands behind your loan instead. If your enterprise ever defaults, the Trust absorbs a large share of the bank's loss — which is why the lender is willing to sanction the loan without asking you for collateral in the first place.
- Applies to term loans, working capital, and composite credit for eligible micro and small enterprises
- You apply for the loan at the bank or NBFC — the lender applies to CGTMSE for the guarantee cover, so you never deal with the Trust directly
- A "Hybrid Security" option now lets you get guarantee cover even on the portion of a loan not backed by any collateral you do offer
- Retail trade and service-sector enterprises are included, alongside manufacturing units
Built for businesses without a property to pledge
CGTMSE removes the single biggest barrier small enterprises face when approaching a bank: the demand for security they simply don't have.
No collateral, no guarantor
Loans are sanctioned purely on the strength of your business case and credit assessment — not on what you own.
Room to grow
Coverage scales up to ₹10 crore for standard MSEs, and ₹20 crore for DPIIT-recognised startups under the linked CGSS window.
Lower cost for women & ZED units
Women entrepreneurs and ZED-certified units get preferential risk treatment, improving approval odds and often the fee.
Works across sectors
Manufacturing, services, and retail trade enterprises are all eligible, not just industrial units.
Predictable annual cost
The Annual Guarantee Fee is fixed and disclosed upfront, so there's no ambiguity about what the guarantee cover will cost you each year.
Incremental credit
Businesses with a clean repayment record can draw further credit within the overall cap as they grow, without re-collateralising.
Eligibility & fee structure
Avenore reviews all of this against your specific enterprise before you approach a bank, so there are no surprises mid-application.
| Criteria | Detail |
|---|---|
| Eligible entities | Micro and Small Enterprises as defined under the MSMED Act, including manufacturing, services, and retail trade units |
| Loan types covered | Term loans, working capital, and composite credit facilities |
| Maximum guarantee-backed loan | Up to ₹10 crore (up to ₹20 crore for DPIIT-recognised startups under CGSS) |
| Guarantee coverage | 75% to 85% of the amount in default, depending on loan slab and borrower category |
| Annual Guarantee Fee | Starts at approximately 0.37% p.a. for small-ticket loans; capped near 1.35% for loans in the ₹2–5 crore range |
| Collateral required | None — primary security is limited to the asset created from the loan itself, where applicable |
From eligibility check to disbursement
Eligibility & enterprise review
We assess your enterprise category, loan requirement, and documentation readiness against CGTMSE norms before you approach any bank.
Bank & product matching
We identify the lender and loan structure best suited to your ticket size, sector, and repayment capacity.
Documentation & project report
Our team prepares the financials, project report, and CMA data the bank needs to sanction the loan without friction.
Bank coordination
We liaise with the bank through sanction and its CGTMSE guarantee application, so you're not chasing updates yourself.
Disbursement & compliance follow-through
Once the loan is disbursed, we help you stay compliant on reporting and renewal obligations tied to the guarantee cover.
Ready to check what you qualify for?
Tell us your loan requirement and enterprise details — Avenore will map it against CGTMSE norms and the right lender within one business day.
Frequently asked questions
Is CGTMSE itself a loan, or a subsidy?
Neither — it's a guarantee scheme. The bank lends the money and sets the interest rate; CGTMSE simply guarantees a portion of that loan to the bank, which is what removes the need for your collateral.
Who actually applies for the CGTMSE guarantee — me or the bank?
You apply for the loan itself at the bank or NBFC. The lender then applies to the Trust for guarantee cover on your behalf — you don't file anything with CGTMSE directly.
Can a new business with no operating history apply?
Bank-based CGTMSE loans generally expect some operating history and financial records. Newer businesses with strong GST or transaction history may still qualify through select NBFC routes — Avenore can assess this for your specific case.
Do trading and service businesses qualify, or only manufacturers?
Retail trade and service-sector enterprises are eligible alongside manufacturing units, though individual lenders may apply their own additional policy restrictions.
What does the Annual Guarantee Fee actually cost me?
It starts at a low rate for small-ticket loans and rises modestly for larger amounts, capping in the range of 1.2–1.35% for loans between ₹2–5 crore. Exact rates depend on your loan slab, category, and the bank's own risk assessment.