The Scheme is offered by Credit Guarantee Fund Trust for Micro and Small Enterprises [CGTMSE] set by jointly  by Government of India and Small Industries Development Bank of India [SIDBI]. 

The Scheme covers Manufacturing and Service sector of Micro and Small Enterprises (except Retail Trade) for setting up new enterprises, expansion, diversification, modernization, technology upgradation and working capital requirements. 

Under the CGFMSE Scheme the trust extends guarantee upto  Rs.50.00 lacs per borrower for credit facilities sanctioned without collateral or third party guarantee. The loans sanctioned under Govt. Sponsored schemes also covered under the scheme. 

Fee Structure :                              

One time upfront Guarantee Fee : 

        For credit Facilities up to Rs.5.00 lac     – 1 .00% of the sanctioned limit

For credit Facilities above Rs.5.00 lac     – 1.50% of the sanctioned limit 

Annual Service Fee :

       For credit Facilities up to Rs.5.00 lac     –   0.50% of the sanctioned limit

For credit Facilities above Rs.5.00 lac    –   0.75% of the sanctioned limit

Note:
Interest rates are subject to change