The term CGTMSE stands for Credit Guarantee Fund Trust for Micro and Small enterprises. This is a popular initiative that was launched in August 2000 by the government of India to help first-time business owners with great ideas and limited funds. As the name suggests, CGTMSE provides credit support and guarantees to the financial institutions to sanction loans to micro, small and medium enterprises.
The main objective of the CGTMSE scheme is to help and encourage first-time business owners with great business ideas and funds them to grow their business.
WHY OPT FOR THE CGTMSE SCHEME?
The CGTSME scheme is highly beneficial for business owners because of its uniqueness. This scheme guarantees credit up to one crore to these first-time entrepreneurs. Also, there is no third party involved for guarantee and security purposes The CGTMSE scheme is most beneficial to young entrepreneurs because it saves them from the burden of taking loans with a high rate of interest. Also if there is a dip in business resulting in the closure of the startup the CGTSME scheme will directly pay the outstanding amount to the lender. This makes this scheme unique and more approachable to borrowers.
CRITERIA TO AVAIL LOANS UNDER THE CGTMSE SCHEME
The most important criteria to avail funds under the CGSTME scheme are that you must be a registered company with a great workable business idea. This scheme is available for both new and old existing businesses.
HOW TO AVAIL OF A CGTMSE LOAN?
One of the most important foundations in the process of availing loans under the CGTMSE scheme is a strong and workable business idea. Based on this business idea the lender can sanction reject the loan. Hence the first step will be preparing the blueprint of the business idea before presenting it to the lender. This is followed by approaching the lender listed under the CGSTME scheme with the blueprint. We, at Moneymax, help and guide borrowers and save their time through minimal paperwork and make the process smooth and hustle-free.
RATE OF INTEREST IN THE CGTMSE SCHEME
BANKs or NBFCs listed under the CGTMSE scheme have to pay a guarantee fee to the government within 30 days of funding. This guarantee fee varies from 0.75% to 1.5% of the disbursed loan amount, Apart from the guarantee fee the lenders under this scheme have to pay an annual service fee of 0.5% to 0.75% of the guarantee fee to the government.
This is how CGTMSE schemes can be availed if you have a great start-up idea and find the funding process quite challenging. To know more information about the CGTMSE scheme get in touch with us at Moneymax and our professionals will guide you through. For more details, you can write to us at email@example.com. and visit www.moneymaxfingrow.com, or call 9092090817.