# What is CGTMSE? A business loan without putting up property

> CGTMSE is a government-backed trust that promises to repay part of a bank's loss if a small business cannot pay. So banks can lend up to ₹10 crore without asking for property. JR Loan Advisors in Chennai: the yearly fee runs from 0.37% to 1.20% of the cover.

Source: https://jrloanadvisors.com/insights/what-is-cgtmse-loan/ · Author: CA Jitendraa Rathi (CA membership number 217936), JR Loan Advisors · Updated 1 Nov 2026

**[Discuss a ₹5 Cr+ loan](https://jrloanadvisors.com/contact/#enquiry)** · WhatsApp +91 94450 93336 (https://wa.me/919445093336) · Call +91 94450 93336 · [Enquiry form](https://jrloanadvisors.com/contact/#enquiry). Loans of ₹5 crore and above.

CGTMSE lets a bank lend a small business up to ₹10 crore without property as security. Example: on a ₹1 crore loan with 75% cover, the cover is ₹75 lakh and the first-year fee at 0.60% is ₹45,000. JR Loan Advisors in Chennai explains it below.

## How does it work?

1. You apply to a bank for a term loan or working capital.
2. The bank checks your business like any other loan (see [how a bank decides your loan](/insights/how-a-bank-decides-your-business-loan/)).
3. If it says yes, it covers the loan with CGTMSE instead of asking for property.
4. If the business later cannot pay, the trust pays the bank part of the loss. You still owe the loan.

## Key numbers (from the official scheme papers)

- **Limit:** up to ₹10 crore per borrower from banks, for guarantees approved from 1 April 2025.
- **Cover:** 75% of the amount in default for loans above ₹50 lakh; higher for some groups, such as women-led firms.
- **Yearly fee (standard rate):** 0.37% up to ₹10 lakh, 0.55% up to ₹50 lakh, 0.60% up to ₹1 crore, 0.85% up to ₹2 crore, 1.00% up to ₹5 crore, 1.10% up to ₹8 crore, 1.20% up to ₹10 crore. Charged on the cover in year 1 and on the amount still owed after that.

## Worked fee example

Loan ₹1 crore. Cover 75% = ₹75 lakh. Year 1 fee at 0.60% = ₹75,00,000 × 0.006 = **₹45,000**. In later years the fee is worked out on the amount still owed, so it falls as you repay.

## Official sources

- [CGTMSE scheme document, updated 1 April 2025](https://www.cgtmse.in/Default/ViewFile/?id=1743176302611_CGTMSE+-+Scheme+Document+CGS+I_updated+as+on+Apr+1+2025.pdf&path=Page)
- [CGTMSE fee table](https://www.cgtmse.in/Home/VS/47)

Checked 1 Nov 2026. Want to know if your business fits? WhatsApp +91 94450 93336.

## Frequently asked questions

### Who can get a CGTMSE-covered loan?

Micro and small businesses, including traders, that borrow from a bank or lender that has joined the scheme. Each bank still decides if it will lend.

### What is the most that can be covered?

Up to ₹10 crore per borrower from public, private and foreign banks, for guarantees approved from 1 April 2025. Small finance banks and some others have lower limits.

### Who pays the fee?

The bank pays it to the trust. The scheme lets the bank decide whether to pass it on to you, so ask for it in writing.

### Does CGTMSE mean the loan is free if I cannot pay?

No. You still owe the full loan. The guarantee only protects the bank. Your credit record is hurt if you do not pay.

## Discuss a ₹5 Cr+ loan

Send your papers for a free first look (₹5 crore to ₹250 crore). This is not a loan approval. **[Discuss a ₹5 Cr+ loan](https://jrloanadvisors.com/contact/#enquiry)** · WhatsApp +91 94450 93336 (https://wa.me/919445093336) · Call +91 94450 93336 · [Enquiry form](https://jrloanadvisors.com/contact/#enquiry). Loans of ₹5 crore and above. You may pay us a fee. We tell you the amount in writing before we start.

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JR Loan Advisors — loan help for borrowers, Chennai & Tamil Nadu. Phone/WhatsApp +91 94450 93336 · jitendraa@jrloanadvisors.com · https://jrloanadvisors.com/