MSME LOAN

MSME Loans Up to ₹2 Crores — Government-Backed Funding

Grow your micro, small or medium enterprise with collateral-free credit under CGTMSE guarantee scheme. Lower rates, priority sector lending, and faster disbursal.

8.5%

From p.a.

₹2 Cr

Max Loan

CGTMSE

Backed

MSME Loan Snapshot

Loan Amount₹50 Lakhs

Interest Rate8.5% p.a.

CGTMSE CoverUp to 85%

CollateralNot Required

Udyam RequiredYes

TenureUp to 7 Years

KEY FEATURES

Why Get Your MSME Loan Through FinGarage?

CGTMSE Backed Collateral-Free Loans

Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), eligible MSMEs can get collateral-free loans up to ₹2 crore with government guarantee coverage.

Priority Sector Lending Benefits

MSME loans fall under RBI's priority sector lending guidelines, pushing banks to offer competitive rates, faster processing, and dedicated MSME loan officers to serve small businesses.

Multiple Scheme Options

MUDRA Tarun (up to ₹10L), SIDBI schemes, PSB59minute portal, and TReDS platform — we identify the most suitable government and bank scheme for your business profile.

Udyam Registration Support

Not yet registered on Udyam portal? We help MSMEs complete Udyam registration — a prerequisite for most government-backed MSME loan schemes and benefits.

Both Term Loan & Overdraft Available

MSME funding is available as term loan (for capex), cash credit / overdraft (for working capital), or both — depending on your specific business funding requirement.

End-to-End Application Support

From Udyam registration to loan documentation, CA coordination, and bank follow-ups — our team manages the entire MSME loan application process for you.

ELIGIBILITY

Who Can Apply?

MSME loans are available to registered micro, small, and medium enterprises across manufacturing and service sectors with a valid Udyam registration.

✓Registered MSME with valid Udyam Aadhaar / Udyam Registration Certificate
✓Business vintage of at least 1–2 years in the same activity
✓Annual turnover consistent with the MSME classification limits
✓GST registered entity with regular return filing (preferred)
✓Promoter CIBIL score of 650 or above
✓Business should not be in default with any other lender

Documents Required

✓Udyam Registration Certificate
✓KYC of promoter (Aadhaar & PAN)
✓GST registration certificate & returns
✓ITR with P&L and balance sheet (2 years)
✓Bank account statements (12 months)
✓Business address proof and ownership documents

THE PROCESS

How It Works

Share Business Profile

Tell us your business type, turnover, Udyam status, and loan requirement. We assess the most suitable scheme — CGTMSE, MUDRA, SIDBI, or regular bank MSME loan.

Identify Best Scheme

We evaluate available government schemes, interest subvention programs, and bank-specific MSME products to recommend the most beneficial structure for your business.

Submit Documents

Upload Udyam certificate, GST returns, ITR, and banking documents. We handle all bank coordination, credit appraisal queries, and follow-ups on your behalf.

Sanction & Disbursal

Post credit approval, the loan is sanctioned and funds are disbursed to your business account — typically within 7–15 working days depending on the scheme and lender.

Frequently Asked Questions

What is CGTMSE and how does it help MSMEs?

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is a Government of India initiative that provides guarantee cover to banks and NBFCs for MSME loans without collateral. This means you can get a loan up to ₹2 crore without pledging any property or assets — the government backs the lender's risk. The guarantee fee is borne by the lender in most cases.

What is the difference between a micro, small, and medium enterprise?

As per revised MSME definition (2020): Micro enterprise — investment up to ₹1 crore and turnover up to ₹5 crore. Small enterprise — investment up to ₹10 crore and turnover up to ₹50 crore. Medium enterprise — investment up to ₹50 crore and turnover up to ₹250 crore. Both manufacturing and service sector enterprises are included.

Is Udyam registration mandatory for an MSME loan?

Udyam registration is mandatory for availing government-backed schemes like CGTMSE, MUDRA, and interest subvention benefits. For regular bank MSME loans, some lenders may process without Udyam, but registration is highly recommended as it also unlocks various government subsidies, tender preferences, and priority in government procurement.

Can a new MSME (less than 1 year old) get a loan?

While most banks prefer 1–2 years of business vintage, MUDRA Shishu (up to ₹50,000) and MUDRA Kishore (up to ₹5 lakhs) loans are available for newer businesses through microfinance institutions and banks. Some NBFCs also offer startup MSME loans based on business plan and promoter's personal creditworthiness.

What is the PSB59minute portal for MSME loans?

PSB59minute (psbloansin59minutes.com) is a government portal that provides in-principle MSME loan approval within 59 minutes. It is available for loans from ₹1 lakh to ₹5 crore. After in-principle approval, the actual disbursement is done by the selected partner bank within 7–15 days. We assist MSMEs in applying on this portal and navigating the subsequent bank process.