Use the scheme that fits the file.
Clear explanations of collateral-free guarantees, eligibility and the fees behind them.
Your facility
You do not choose the risk tier. CGTMSE assigns it to your bank based on its portfolio performance, and your bank decides whether to pass the cost on to you at all. Ask which tier applies before you sign.
That is your 13% bank rate plus 0.33% of guarantee fee. Over 5 years you pay Rs.10,95,553 in interest and Rs.49,611 in guarantee fee.
A secured loan at 9.5% would cost Rs.7,80,335 in total. Not pledging collateral is costing you Rs.3,64,829 across the life of this loan. Whether that is worth it depends on what the collateral is and what else you might need it for.
Guarantee fee, year by year
Year one is charged on the guaranteed amount. From year two the fee follows your outstanding balance down, so it falls every year as you repay.
Total guarantee fee over the loan: Rs.49,611
KarobarUdhar Insider Tip
The guarantee fee is a cost of not pledging collateral, and it is often worth paying, but it is rarely presented that way. Ask your lender directly for two quotes: one CGTMSE-backed and one secured against whatever you could pledge. The rate difference plus the guarantee fee is the true price of keeping your property free, and on this loan that price is Rs.3,64,829. Compare it against what having that property unencumbered is worth to you over the same period.
KarobarUdhar Insider Tip
The guarantee protects the lender, not you. If the loan defaults, CGTMSE pays the bank a share of the amount in default and then has recourse to recover from the borrower. Owners routinely assume the guarantee cancels their liability. It does not. Your repayment obligation is unchanged, and the fee you are paying buys the bank's comfort, which is what allows the loan to be made without security.
Indicative only. Fee slabs follow the AGF structure revised effective 1 April 2025 under CGTMSE Circular No. 251/2024-25 dated 18 March 2025, applicable to guarantees approved or renewed on or after that date. Your actual rate depends on your lender's CGTMSE risk classification, which the borrower does not control, and on whether the lender passes the cost on. This calculator uses the guaranteed amount in year one and the outstanding loan balance in subsequent years as the fee basis. Coverage percentages apply to the amount in default, not to the sanctioned loan. Check that basis against your sanction letter and confirm all figures with your member lending institution.
Guidance by stage
Choose a scheme
- MCGS-MSME After the 2026 Revision: Rs.100 Crore Machinery Loans Without Collateral
- CGTMSE in 2026: Rs.10 Crore Ceiling, Guarantee Fees Cut by Half, and What Changed for Your File
- Stand-Up India Loan for Women and SC/ST Entrepreneurs - What the Portal Does Not Tell You
- PMEGP Scheme 2026 - Subsidy Guide for First-Time Entrepreneurs
- CGTMSE Scheme Guide 2026 - How to Get a Collateral-Free Business Loan
- Mudra Loan Complete Guide 2026 - Four Categories and Tarun Plus
Government scheme comparison
| Scheme | Ticket size | Guarantee cover | Eligibility | Verified |
|---|---|---|---|---|
| Pradhan Mantri Mudra Yojana | Up to Rs.20 lakh | CGFMU; collateral not required | Income-generating micro enterprises; Tarun Plus requires successful Tarun repayment | 2026-09-08 |
| CGTMSE Credit Guarantee Scheme | Credit facility up to Rs.10 crore | 75% to 90%, depending on borrower category | Eligible new and existing micro and small enterprises through member lenders | 2026-09-08 |
| PMEGP | Rs.50 lakh manufacturing; Rs.20 lakh services | Margin-money subsidy; not a rate guarantee | New micro enterprises; education threshold applies above specified project sizes | 2026-09-08 |
| PM Vishwakarma | Rs.3 lakh in two tranches | Collateral-free; 5% concessional borrower rate | Artisans and craftspeople in the 18 listed traditional trades | 2026-09-08 |
| MCGS-MSME | Up to Rs.100 crore | 60% NCGTC guarantee | Manufacturing MSMEs purchasing machinery or equipment; at least 75% of project cost must be equipment | 2026-09-08 |