Ministry of Micro, Small and Medium Enterprises (MSME) and SIDBI (jointly, via CGTMSE Trust)
Status: active. A trust jointly set up by the Government of India (Ministry of MSME) and SIDBI to enable collateral-free/third-party-guarantee-free credit to micro and small enterprises through member lending institutions (banks, NBFCs, RRBs). Effective 1 April 2025, the maximum guarantee coverage limit was raised from Rs 5 crore to Rs 10 crore, with Annual Guarantee Fees reduced.
Collateral-free credit guarantee covering up to Rs 10 crore per borrower (raised from Rs 5 crore, effective 1 April 2025), with guarantee cover of 75-85% depending on enterprise category and loan size.