Key facts
What the official sources publish
Every value belongs to this exact product. Expand any fact to inspect its official evidence in place.
Collateral-free MSME coverCGTMSE coverage for collateral-free credit to Micro and Small Enterprises under the MSMED Act; the product page describes loans up to ₹50 lakh for the scheme purpose and an eligible loan limit up to ₹10 crore.View source
The official page publishes the collateral-free purpose amount and eligible loan limit.
- Source
- Coverage of Collateral Free Loans ()
- Page / section
- Eligibility — Purpose / Limit
- Accessed
- 23 Aug 2026
- Confidence
- high
Security treatmentPrimary security is the asset created from the credit facility or directly associated with the financed business/project. Separate facilities may be covered even when another facility has collateral or a third-party guarantee, subject to scheme rules.View source
The official security section explains primary security and separate-facility treatment.
- Source
- Coverage of Collateral Free Loans ()
- Page / section
- Eligibility — Security
- Accessed
- 23 Aug 2026
- Confidence
- high
Collateral / securityThe scheme is designed for collateral-free cover, but the primary security is the asset created from the credit facility or directly associated with the business/project, such as unencumbered land, plant and machinery or other business property. CGTMSE also offers hybrid security for the portion not covered by collateral.View source
The official security section distinguishes collateral-free guarantee cover from primary security and describes the hybrid-security option.
- Source
- Coverage of Collateral Free Loans ()
- Page / section
- Eligibility — Security
- Accessed
- 30 Aug 2026
- Confidence
- high
Turnover / vintageNo turnover or operating-vintage threshold is published. CGTMSE defines an eligible borrower as a new or existing Micro or Small Enterprise receiving eligible credit without collateral security and/or third-party guarantee; MSE status follows the MSMED Act and amendments.Effective 1 Apr 2025View source
The scheme defines an eligible borrower as a new or existing Micro and Small Enterprise; it does not state a turnover or minimum-vintage threshold.
- Source
- CGS-I Scheme Document, updated April 1, 2025
- Page / section
- Pages 1-3 — Definitions: Eligible borrower and Micro and Small Enterprises
- Accessed
- 30 Aug 2026
- Confidence
- high
RateThe lending rate itself is set by the member lending institution under applicable RBI guidelines; no borrower interest percentage is published for this coverage product. The BOB page instead publishes a composite guarantee-fee range of 1% + risk premium to 2% + risk premium, while the current CGTMSE schedule (for guarantees approved or renewed from April 1, 2025) gives standard annual guarantee-fee rates of 0.37% to 1.20% by slab, before MLI discount/
The current fee page publishes the revised AGF slabs and states that MLIs decide whether to pass AGF to the borrower; the scheme says facilities with interest charged under guidelines are eligible.
- Source
- Modified Fee Structure
- Page / section
- Modified FEE Structure — Annual Guarantee Fee; Cost to the borrower
- Accessed
- 30 Aug 2026
- Confidence
- high
TenureGuarantee cover follows the agreed tenure of term credit. Where working capital alone is extended, cover runs for 5 years or a block of 5 years and may be renewed after each block; the scheme states there is no maximum guarantee-period cap for a working-capital account. This is guarantee-cover tenure, not a prescribed borrower repayment tenure.Effective 1 Apr 2025View source
The specifies agreed term-credit tenure and five-year renewable blocks for working capital, but not a borrower repayment schedule.
- Source
- CGS-I Scheme Document, updated April 1, 2025
- Page / section
- Pages 3 and 5 — Definition of tenure of guarantee cover; Section 4
- Accessed
- 30 Aug 2026
- Confidence
- high
FeesA separate Bank of Baroda processing fee is not published on the product page. CGTMSE's current Annual Guarantee Fee (AGF), for guarantees approved or renewed from April 1, 2025, is charged on the guaranteed amount in the first year and outstanding amount thereafter: standard rates are 0.37% (₹0–10 lakh), 0.55% (above ₹10–50 lakh), 0.60% (above ₹50 lakh–₹1 crore), 0.85% (above ₹1–2 crore), 1.00% (above ₹2–5 crore), 1.10% (above ₹5–8 crore) and 1.20% (above ₹8–10 crore). MLI-level discounts/
The fee page states the standard slabs, first-year/later-year basis, 10% concessions and that the MLI may pass AGF to the borrower or bear it itself.
- Source
- Modified Fee Structure
- Page / section
- Modified FEE Structure — slabs and Cost to the borrower
- Accessed
- 30 Aug 2026
- Confidence
- high
DocumentsThe Bank of Baroda product page and CGTMSE scheme document do not publish a borrower-facing itemised application checklist. The scheme requires the member lending institution to lodge the guarantee application and, for claims, submit the prescribed electronic Declaration & Undertaking and system checklist; the MLI must maintain the credit, primary-security and recovery records required by the scheme.Effective 1 Apr 2025View source
The sets MLI record, application and claim obligations but does not provide a customer document checklist for the product page.
- Source
- CGS-I Scheme Document, updated April 1, 2025
- Page / section
- Pages 7, 15-18 — MLI responsibilities and claim lodgement
- Accessed
- 30 Aug 2026
- Confidence
- high
Geographic limitsThe scheme has no general state or branch restriction. It provides additional 10% guarantee-fee concessions and/
Geographic categories receive specified concessions/coverage treatment; the scheme does not limit borrowers to a single territory.
- Source
- CGS-I Scheme Document, updated April 1, 2025
- Page / section
- Pages 9-10 and 13-14 — fee concessions and extent of guarantee coverage
- Accessed
- 30 Aug 2026
- Confidence
- high
Guarantee coverageFor guarantees approved on or after April 1, 2025: Micro Enterprises receive 85% up to ₹5 lakh and 75% above ₹5 lakh up to ₹10 crore; North East/
The current coverage table applies to guarantees approved on or after April 1, 2025 and includes the 5% ICDD uplift.
- Source
- CGS-I Scheme Document, updated April 1, 2025
- Page / section
- Pages 13-14 — Section 9, Extent of Guarantee Coverage
- Accessed
- 30 Aug 2026
- Confidence
- high
Eligible facilities and capsCGS-I covers term loans and/
The scope section lists facility types, institution-specific caps and newly eligible trading and educational/training activities.
- Source
- CGS-I Scheme Document, updated April 1, 2025
- Page / section
- Pages 4-5 — Section 4, Credit facilities eligible under the scheme
- Accessed
- 30 Aug 2026
- Confidence
- high
ExclusionsThe scheme excludes facilities already covered to the same extent by DICGC, RBI, government/insurer/other guarantee or indemnity schemes, NCGTC, or another CGTMSE-covered facility with an unpaid invoked claim; facilities without required primary security are excluded unless specifically provided; and a facility already secured by collateral/third-party guarantee is excluded except for the unsecured portion under the Hybrid Security model.Effective 1 Apr 2025View source
Section 5 lists the excluded guarantee overlaps, missing primary security and collateral/third-party-guarantee rules, including the hybrid exception.
- Source
- CGS-I Scheme Document, updated April 1, 2025
- Page / section
- Pages 6-7 — Section 5, Credit facilities not eligible
- Accessed
- 30 Aug 2026
- Confidence
- high
Claim conditionsA guarantee claim requires the cover to be in force, the applicable lock-in period to have elapsed (18 months, or 9 months for a guarantee up to ₹10 lakh with tenure up to 36 months), the account to be an NPA with unpaid dues, recall and recovery proceedings where required, and compliance with the scheme conditions. The Trust pays 75% of an eligible claim within 30 days and the balance 25% after 3 years from first settlement or eligible OTS, subject to the scheme rules.Effective 1 Apr 2025View source
The claim section sets lock-in, , recovery, payment-timing and two-instalment conditions.
- Source
- CGS-I Scheme Document, updated April 1, 2025
- Page / section
- Pages 15-18 — Section 10, Invocation of guarantee and settlement
- Accessed
- 30 Aug 2026
- Confidence
- high
Security treatmentPrimary security is the asset created from the credit facility or an existing unencumbered asset directly associated with the financed business/project. The Hybrid/Partial Collateral Security model permits collateral for part of the facility and CGTMSE cover for the unsecured portion, up to the applicable cap, with a notional second charge for CGTMSE.Effective 1 Apr 2025View source
The defines primary security and describes the hybrid model for the collateral-backed and unsecured portions.
- Source
- CGS-I Scheme Document, updated April 1, 2025
- Page / section
- Pages 2-5 — Definitions and Section 4 Hybrid Security; page 6 Section 5
- Accessed
- 30 Aug 2026
- Confidence
- high
Customer typeEligible micro, small and medium enterprisesView source
The manually reviewed product record states: “Eligible micro, small and medium enterprises”.
- Source
- Coverage of Collateral Free Loans () — official product page
- Page / section
- Published product metadata
- Accessed
- 15 Aug 2026
- Confidence
- high
Facility amountCGTMSE coverage for collateral-free credit to Micro and Small Enterprises under the MSMED Act; the product page describes loans up to ₹50 lakh for the scheme purpose and an eligible loan limit up to ₹10 crore.View source
The manually reviewed product record states: “ coverage for collateral-free credit to Micro and Small Enterprises under the MSMED Act; the product page describes loans up to ₹50 lakh for the scheme purpose and an eligible loan limit up to ₹10 crore.”.
- Source
- Coverage of Collateral Free Loans () — official product page
- Page / section
- Published product metadata
- Accessed
- 15 Aug 2026
- Confidence
- high
Benefits and features
- coverage for collateral-free credit to Micro and Small Enterprises under the MSMED Act
- the product page describes loans up to ₹50 lakh for the scheme purpose and an eligible loan limit up to ₹10 crore.
Related official documents
Coverage of Collateral Free Loans (CGTMSE) — Bank of Baroda official product pageofficial-product-page · current · accessed 30 Aug 2026
↗Coverage of Collateral Free Loans (CGTMSE) — official product pageofficial-product-page · current · accessed 30 Aug 2026
↗Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS-I), updated April 1, 2025official-scheme-pdf · current · accessed 30 Aug 2026
↗CGTMSE Modified Fee Structure — official fee-structure pageofficial-policy-page · current · accessed 30 Aug 2026
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