Question

What is the upper limit of the guarantee cover under the CGTMSE scheme for micro and small enterprises ?

Q: Answer-What is the upper limit of the guarantee cover under the CGTMSE scheme for micro and small ente...

Under the CGTMSE scheme, the limits were enhanced in the recent Union Budget 2025-26 as follows The credit guarantee cover for micro and small enterprises has been increased from 5 crore to 10 crore , enabling additional credit of 1.5 lakh crore over five years. Startups will see their guarantee cover double from 10 crore to 20 crore, with a reduced fee of 1 for loans in 27 priority sectors. Exporter MSMEs will benefit from term loans up to 20 crore with enhanced guarantee cover The credit facilities which are eligible to be covered under the scheme are both term loans and working capital fund basednon-fund based, extended without any collateral security or third party guarantee, to a new or existing micro and small enterprise, by lending institutions to a single eligible borrower in MSE sector.