Collateral Free Credit Guarantee Scheme

collateral free credit guarantee scheme


You want to take loan but collateral security is a big problem for you?

So, here is a solution of your problem.

New Subsidy Scheme i.e., “Collateral Free Credit Guarantee Scheme”

In the business organization, there is need of more funds and every business will depend on the debt finance to run the business. The small businesses will not easily get the loan from banks as it required many formalities, security and guarantee to be provided.


To support the micro enterprises there is creation of Government based trust called Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) which provide the guarantee to the bank on behalf of MSME and in return they charge the guarantee cover fees for the guarantee provided and there is no need of third party guarantee.


It will help the MSE to raise the funds without having guarantee but it will increase the charges for getting the benefit of guarantee given by CGTMSE. To reduce the burden of fees paid to CGTMSE, The State Govt. of Haryana has launched the Scheme of Collateral Free Credit Guarantee Scheme to provide assistance to micro enterprises to get reimbursement of the fees paid to the CGTMSE for providing the guarantee to the bank on their behalf.


Under this Scheme, Department of Industry will provide the reimbursement of guarantee fees paid to the Banks/FI for collateral free loans by micro enterprises under which guarantee given by CGTMSE on behalf of MSE.




All Micro enterprises gone into commercial production on or after 01.01.2021. The Industrial Units shall also comply with following conditions:-

i. The unit shall file IEM/Udyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM)on the portal for statistical purpose, at any stage.

ii. Credit facility should be availed by the borrowers from a single lending institution.

iii. The eligible lending institutions are scheduled commercial banks and regional rural banks (which have been classified under Sustainable Viable by NABARD).

iv. Unit should not fall in the restrictive list as notified by the State Government from time to time.

v. The unit should be in regular production at the time of disbursement and the subsidy shall not be released to the closed unit.

vi. Unit should be in commercial production.


Financial Assistance/Subsidy/Benefits Available:

The Quantum of Assistance as under would be provided in the State as per the given below terms:


100% of reimbursement of guarantee cover fee charged by the FI/ Banks from Micro enterprises for collateral free term loan/ working capital under credit guarantee fund trust for Micro and Small Enterprises (CGTMSE) for a period of 5 years.


Time Limit for Apply:

Within 3 Months from the date of start of operation.


So if you are going to plan for set up a New Business Unit and required the loan facility without available of guarantor then You should plan according to above said scheme.

If you want to apply in this scheme, Contact us at- 9017151780


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