Collateral-Free Loans
Accessibility: MSEs can obtain loans without providing collateral, which can be a significant barrier for many small businesses that may not have sufficient assets.
Enhanced Credit Availability
Increased Lending: By providing a guarantee to lenders, CGTMSE encourages banks and financial institutions to extend more credit to micro and small enterprises.
Support for Various Sectors
Diverse Coverage: CGTMSE covers a wide range of sectors, including manufacturing, services, and retail, making it applicable to various types of MSEs.
High Guarantee Coverage
Risk Mitigation for Lenders: The scheme provides a guarantee coverage of up to 85% for micro enterprises and 75% for small enterprises, significantly reducing the risk for lenders.
Simplified Loan Application Process
Streamlined Procedures: The process for applying for loans under the CGTMSE scheme is generally simpler compared to traditional lending methods, making it easier for MSEs to access funds.
