₹10 Crore CGTMSE Loan: Eligibility, Guarantee Fees & Bank Sanction
Access collateral-free and collateral-light term debt and working capital facilities up to ₹10 Crore under the enhanced CGTMSE CGS-I ceiling for growing manufacturing and service enterprises.
Under the revised CGTMSE CGS-I norms (Circular 250/2024-25, effective 1 April 2025), the credit guarantee cover ceiling is officially enhanced to ₹10 Crore for eligible Micro and Small Enterprises. Facilities are structured as collateral-light term capex (up to 7–10 years) and working capital credit lines at 9.25%–11.25% p.a., with Annual Guarantee Fees (AGF) between 1.35% and 1.80%.
Key Underwriting Parameters for ₹10 Crore CGTMSE Facilities
Maximum permissible composite guarantee cover under Circular 250/2024-25.
Repo or 1-year MCLR + bank spread benchmarked across 45+ member lending institutions.
Audited operational revenue supporting 15%–25% bank exposure under Tandon Method II.
Fast-track term sheet in 7–14 days; committee sanction within 28 days post CMA appraisal.
CGTMSE Guarantee Fee (AGF) Structure for ₹10 Crore
Under the revised credit guarantee schedule, the Annual Guarantee Fee (AGF) is calculated on the sanctioned or outstanding balance and depends on borrower category and credit rating:
| Credit Slab | Standard Enterprise AGF | Women / SC / ST / Aspirational | Guarantee Coverage % |
|---|---|---|---|
| Up to ₹1.00 Crore | 0.75% – 1.00% p.a. | 0.60% – 0.85% p.a. | 85% |
| ₹1.00 Cr to ₹5.00 Crore | 1.20% – 1.50% p.a. | 1.05% – 1.35% p.a. | 75% |
| ₹5.00 Cr to ₹10.00 Crore (New Tier) | 1.35% – 1.80% p.a. | 1.20% – 1.65% p.a. | 75% |
Hybrid Collateral Security Model for ₹10 Crore Facilities
For borrowing requests at the ₹10 Crore ceiling, commercial banks frequently utilize the CGTMSE Hybrid Security model. Promoters provide partial tangible collateral (e.g., 25%–35% of the limit in industrial or residential property), while CGTMSE covers the unsecured portion (up to ₹10 Crore). This drastically lowers the lender's risk-weighted capital charge, leading to lower interest rate spreads.
Primary Asset Charge
First exclusive or pari-passu hypothecation charge over plant, machinery, stock, and trade book debts funded by the term or working capital facility.
CGTMSE Guarantee Pool
Up to 75% default coverage underwritten by CGTMSE under Trust deed, bypassing personal property encumbrance.
Promoter Personal Guarantee
Promoter directors provide personal guarantees without requiring third-party guarantors or external collateral pledges.
Frequently Asked Questions: ₹10 Crore CGTMSE Loans
Can an existing borrower with ₹5 Crore CGTMSE enhance to ₹10 Crore?
Yes. Existing borrowers with active CGTMSE coverage can apply for limit enhancements up to the revised aggregate ₹10 Crore ceiling, provided the account has maintained standard asset classification and healthy turnover growth for the preceding 12 months.
Which lenders offer ₹10 Crore CGTMSE facilities in India?
All major Scheduled Commercial Banks—including State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India, HDFC Bank, ICICI Bank, and SIDBI—are Member Lending Institutions (MLIs) registered to disburse under the enhanced ₹10 Crore circular.
What is the minimum DSCR required for a ₹10 Crore CGTMSE term loan?
Banks mandate a minimum Gross Debt Service Coverage Ratio (DSCR) of 1.25x (with average DSCR of 1.40x–1.60x) and a Debt-Equity Ratio not exceeding 3:1 to ensure cash flows comfortably service principal amortization and guarantee fee obligations.
Is the ₹10 Crore guarantee fee paid upfront or annually?
The Annual Guarantee Fee (AGF) is paid on an ongoing annual basis on the outstanding balance of the facility, not as a single lump-sum upfront deduction across the full tenure.
Submit Your ₹10 Cr CGTMSE Mandate
Direct intake for our Senior Debt Syndication team. Receive an initial credit committee appraisal and indicative bank match within 48 hours.