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₹1180
All inclusive
- MOFPI
Here are some key details about the CGTMSE scheme:
Objective: The primary objective of CGTMSE is to facilitate
credit flow to micro and small enterprises by providing credit guarantee
coverage for collateral-free loans extended by eligible financial institutions.
Coverage: The scheme covers both new and existing micro and
small enterprises, including those in the manufacturing as well as service
sectors. MSEs engaged in activities like manufacturing, trading, services, and
agriculture-related activities are eligible for coverage under CGTMSE.
Collateral-free Loans: CGTMSE provides a credit guarantee cover for
collateral-free loans up to a certain limit. This means that MSEs can avail
loans without providing any tangible collateral or third-party guarantee,
making it easier for them to access credit.
Guarantee Coverage: Under CGTMSE, the guarantee coverage varies based on
the amount of the loan. Generally, the guarantee cover is provided for a
portion of the credit facility, typically ranging from 75% to 85% of the
sanctioned amount.
Eligible Lenders: The scheme is available through eligible financial
institutions such as scheduled commercial banks, regional rural banks, select
financial institutions, and small finance banks, among others.
Eligible Borrowers: MSEs with a project cost or credit facility up to a
certain limit are eligible for coverage under CGTMSE. The definition of micro
and small enterprises is based on their investment in plant and machinery or
equipment, depending on the sector they belong to.
Premium Payment: MSEs availing loans under the CGTMSE scheme are
required to pay a one-time guarantee fee to the trust. The fee is based on the
amount of the credit facility sanctioned and is typically calculated as a
percentage of the loan amount.
Repayment Period: The repayment period for loans covered under CGTMSE
may vary based on the nature of the project, business cycle, and other factors.
Generally, borrowers are provided with flexible repayment terms to suit their
cash flow requirements.
Claim Settlement: In case of default by the borrower, the lending
institution can file a claim with CGTMSE for the guaranteed amount. Upon
verification and approval, CGTMSE settles the claim with the lender, thereby
mitigating the credit risk associated with lending to MSEs.
Operational Guidelines: The operational guidelines and procedures for
implementing the CGTMSE scheme are laid down by the trust and periodically
revised based on feedback and evolving market conditions.
Overall,
the CGTMSE scheme plays a crucial role in promoting entrepreneurship and
supporting the growth of micro and small enterprises by facilitating access to
finance and reducing the risk for lenders. which contributes to job creation,
income generation, and economic development.
A clear, structured delivery process from start to finish
CA/CS specialist reviews your requirements and confirms scope.
We share a checklist and collect through our secure portal.
Our team files all applications with government authorities.
Certificates and audit-ready documentation delivered on time.
Practical answers curated by our CA and CS desks for MOFPI.
The Ministry of Food Processing Industries (MoFPI) promotes the growth of India’s food processing sector by providing policies, subsidies, and support to improve value addition, reduce wastage, and create employment.
Entrepreneurs, farmers, food processing
units (new or existing), Farmer Producer Organisations (FPOs), cooperatives,
self-help groups (SHGs), and large food-processing companies can benefit
depending on the specific scheme.
MoFPI schemes provide financial assistance, infrastructure development, technology upgrades, and business expansion support to strengthen the food processing value chain.
The schemes cover setting up or
modernising food-processing/preservation units, cold chain infrastructure,
agro-processing clusters, micro-enterprise formalisation, and production-linked
incentives.
Applicants must be legally registered entities, have a viable project plan, meet scheme-specific investment requirements, and comply with financial and operational norms.
Required documents typically include business registration proof, project reports, financial statements, land or asset documents, and relevant licenses or approvals.
Yes, most schemes define subsidy limits (often
between 35–50%) and set maximum project cost thresholds for eligibility.
Yes, micro and small enterprises receive
targeted support under schemes like PMFME, while larger companies qualify for
broader capital-intensive initiatives.
Identify the relevant scheme, prepare a project report, compile required documents, apply through the designated portal, obtain sanction, and implement the project as per guidelines.
Project timelines vary by scheme but are generally between 12 to 18 months from the date of approval.
Beneficiaries must maintain records of financial transactions, project progress, and performance outcomes, and submit periodic reports or audits.
Non-compliance may lead to cancellation of benefits, recovery of subsidies, and disqualification from future assistance programs.
Benefits include reduced project costs,
better access to modern technology, improved market reach, and job creation in
rural and semi-urban areas.
Applicants should be prepared for detailed documentation, strict compliance norms, and adherence to project timelines.
Avoid incomplete documentation, unrealistic project plans, or delays in implementation after sanction.
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