Question
What is the upper limit of the guarantee cover under the
CGTMSE scheme for micro and small enterprises ?Solution
Under the CGTMSE scheme, the limits were enhanced in the recent Union Budget 2025-26 as follows: Â
- 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. Â
- 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. Â
- Exporter MSMEs will benefit from term loans up to ₹20 crore with enhanced guarantee cover Â
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