Loan without Collateral in India

Post by: IndiaFilings in Business Loan Business Startup Guide Business Tips & Tricks

Business Loan Without Collateral in India

A major requirement for starting a new business is capital in the form of equity or debt. In the case of first generation entrepreneurs, both equity and debt are hard to come-by and is a major hurdle for many first time / first generation entrepreneurs. Therefore, in an effort to promote first generation entrepreneurs and their dreams of setting up a business, the Government of India through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides access for first generation entrepreneurs to bank credit without the hassles of collaterals / third party guarantees.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Ministry of Micro, Small & Medium Enterprises (MSME), Government of India launched Credit Guarantee Scheme (CGS) so as to strengthen credit delivery system and facilitate flow of credit to the MSE sector and first-time entrepreneurs. To operationalize the scheme, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed collateral free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 75 / 80/ 85 per cent of the credit facility.

Scheme: Loans Approved under CGTMSE

New and existing Micro and Small Enterprises engaged in manufacturing or service activity excluding ‘Retail Trade’ is covered under the CGTMSE Scheme and is eligible to receive bank loan from CGTMSE Member Lending Institutions without any collateral or third party guarantees. Regional Rural Bank / Financial Institution can offer upto Rs.50 lakhs of credit facilities to a single eligible borrower in the Micro and Small Enterprises sector. Scheduled Commercial Banks and select Financial Institutions can extend upto Rs.100 lakhs of credit facilities to an eligible borrower under the scheme. Credit facilities can be extended by way of term loan and/or working capital facilities.

Loans NOT Approved under CGTMSE Scheme

Some of the credit assistance that will not be eligible for cover under CGTMSE are credit facilities granted to any borrower, who has availed himself of any other credit facility covered under this scheme and where the lending institution has invoked the guarantee provided by the Trust or has not repaid any portion of the amount due to the Trust or by reason of any default on the part of the borrower in respect of that credit facility. Further, any credit facility which has been sanctioned by the lending institution against collateral security and/or third party guarantee is also not eligible for cover under the CGTMSE scheme. Finally, any credit facility which has been sanctioned by the lending institution with interest rate more than 3% over the Prime Lending Rate (PLR) of the lending institution is not eligible for cover under the CGTMSE scheme.

Obtaining Loan under CGTMSE Scheme

To obtain a loan under the CGTMSE Scheme, the borrower must approach one of the CGTMSE Member Lending Institutions and apply for credit under the scheme. The lending institution shall evaluate credit applications by using prudent banking judgement and shall use their business discretion / due diligence in selecting commercially viable proposals and conduct the account(s) of the borrowers with normal banking prudence. The lending institution shall ensure that the guarantee claim in respect of the credit facility and borrower is lodged with the Trust in the form and in the manner and within such time as may be specified by the Trust in this behalf and that there shall not be any delay on its part to notify the default in the borrowers account which shall result in the Trust facing higher guarantee claims.

CGTMSE Member Lending Institutions

Allahabad Bank
Andhra Bank
Axis Bank Ltd.
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
City Union Bank
Corporation Bank
Dena Bank
Deutsche Bank
Export Import Bank of India
HDFC Bank Ltd.
ICICI Bank Ltd.
IDBI Bank Ltd.
Indian Bank
Indian Overseas Bank
IndusInd Bank Ltd.
ING Vysya Bank Ltd.
Kotak Mahindra Bank Ltd.
Lakshmi Vilas Bank
Oriental Bank of Commerce
Punjab & Sind Bank
Punjab National Bank
Small Industries Development Bank of India
Standard Chartered Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India
State of Mysore
State Bank of Patiala
State Bank of Travancore
Syndicate Bank
TamilNadu Mercantile Bank Ltd.
The Federal Bank Ltd.
The Karur Vysya Bank Ltd.
The South Indian Bank Ltd.
The Tamil Nadu Industrial Investment Corporation Ltd.
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank
Yes Bank

For a more comprehensive list of CGTMSE Member Lending Institutions, click here.

To start a business or to know more about collateral free loan, visit IndiaFilings.com

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Tags: business loan business schemes Capital Gains CGTMSE

12 Jan 2014

Comments (77)

abbas ali

Oct 15, 2014 at 9:04 PM

Hello sir my name is Abbas Ali I want business loan

malsawma

Nov 15, 2014 at 6:52 PM

Sir, i want a home loan ,if u can help ,please

mbdivakara

Nov 17, 2014 at 11:25 AM

i need a loan to start business

Neeraj bhagat

Nov 29, 2014 at 11:26 PM

packaging unit of agri products bio &organic fertilizer

SWAROOP MANDAL

Dec 06, 2014 at 3:06 PM

I have a showroom of two wheeler motorcycle can I fit for this opportunity

B GOGOI

Dec 06, 2014 at 9:25 PM

i interested a business loan please help me.

c.k.manikandan

Dec 19, 2014 at 8:48 PM

i need the loan for new small industrial business in service sector

Sridharan

Dec 25, 2014 at 11:40 PM

Dear sir,
I would like to open a new shop in service industry in Coimbatore. please guide me to start a shop and getting a loan from the bank if possible.

thanks

KUNAL GARG

Dec 30, 2014 at 4:47 PM

SIR I WANT TO START OUR OWN BUSINESS FOR THIS I NEED FUNDS PLEASE HELP TO START MY BUSINESS IN FUNDS

irfan

Jan 15, 2015 at 7:17 PM

Hi,
Kindly send ur company address and contact No.

Thanks.

irfan

OSGC HOUSE

Jan 20, 2015 at 1:56 PM

we need a loan of 25 laks to further carry our business . pl depute ur person to do the needful .

osgc house ,
village kanganwal ,
jaspal bangar road ,
ludhaiana

IndiaFilings

Jan 21, 2015 at 10:51 PM

Dear Sir,

One of our Business Advisors will reach out to you tomorrow. We can help you with all the bank loan requirements.

mukesh dahiya

Feb 03, 2015 at 9:57 PM

bussiness loan

mukesh dahiya

Feb 03, 2015 at 9:59 PM

bussines loan

Amitesh Anand

Feb 08, 2015 at 8:29 PM

Can i get collateral/security free loan to start a business?

IndiaFilings

Feb 08, 2015 at 9:49 PM

Yes, please send us the requirement to [email protected]

damodar naik

Feb 14, 2015 at 7:10 PM

having S S I (MICRO)TINY unit in Goa wants credit facilities under cgtsme so please guide

IndiaFilings

Feb 17, 2015 at 5:22 AM

Dear Sir,

Kindly email us your phone number of contact 044 40247777 and our Advisors will help you.

Regards,
IndiaFilings Team

nitin kuchekar

Feb 16, 2015 at 3:41 PM

Bank list is OK but without collateral any bank is not ready to give us loan under cgtmse. Who is getting benefit who have already established businesses & have account with that cgtmse listed bank.
Have personal experience from last 5 yrs, struggling to start the project but don’t have collateral. In India people don’t require talent ……

chetan

Feb 23, 2015 at 12:39 PM

Hello Everybody & India filings

We need your help to bring revolution in india.

We are known as “indian student world” search us on facebook

we are looking for an investment of around 20-25 lakh for this. We have wireframed our web application, and have done project reports and We are confident of bringing revolution in india.

Revolution in our sense means:

>> Our web application will provide an opportunity to every individual to earn through whatever skill they have. This way we can eradicate unemployement from india.

>> Our web applicaiton supports a very unique feature and through this way, We can help india get rid of poverty as well.

>> The third and most important part of our web application is that, We can provide a one to one interaction system to companies, students, general vendors and colleges all in one platform and through this way we can organize all disorganized sector.

>> We have 15+ Revenue sources and we are confident of generating around 500% return on investment as per our feasibility study. All we need is an investment for web application development.

Please help us.

We need investment to register our company, and developing the web application. that’s all.

Please let me know if Any body can help this noble reason.

India will be benefited a lot and this is what motivates us for this startup.

for more please review this video: https://www.youtube.com/watch?v=jH9L0Cg9aZg

Plz Help India. Please help us.

balakrishna

Mar 13, 2015 at 6:01 PM

I need loan to start a bussiness

R Mukherjee

Apr 07, 2015 at 8:14 PM

I am planning to start a small heavy earth-moving equipment dealership in West Bengal. Need a small business loan without collateral to start operations. Is there a way?

R Vijayakumar

Apr 09, 2015 at 1:02 PM

Im planning to start medical shop in my town hosur so I request your goodselves to kindly guide

Harnam Singh

Apr 14, 2015 at 9:19 PM

Your website is really very informative not only on your products services but also is a great source of information for new entrepreneurs.

I am in the process of starting a food items retail business. I propose to start a retail outlet in Delhi for selling Indian fast food items. I wish to raise about Rs.10 lakhs to i) for taking shop premises on lease, readying it by interior works and furnishing its; ii) buy equipments, refrigerated food cabinets, freezers, tea/coffee vending machines, etc.; and also for working capital. I am presently working on a detailed project report for this venture.

Is it possible to raise unsecured business loan through you firm? Please reply through e-mail.

Thanks.

Harnam Singh

bhat shafiq

Apr 14, 2015 at 11:17 PM

Your Comment i am mohd shafi i want personal loan

Ganesh S Pulgamwar

Apr 25, 2015 at 12:21 PM

i am new enterpineur i startup business

Mr Weman Devlin

Apr 27, 2015 at 5:27 PM

Do you need a loan we give out loan at low interest rate of 2% We give out loan from the minimum of 10,000.00 euro to the maximum 100 million euros. If interested, Contact us via email: [email protected] for more information

Shri

May 19, 2015 at 2:08 PM

We are looking for Loan for our upcoming Shipping Project.

kindly revert if you can assist

zafarullah

May 29, 2015 at 3:10 PM

I need buisness loan without colateral for buisness 15lakhs

Mohammed Mubeen Ali

Apr 28, 2015 at 4:50 PM

Require Non Collateral Business loan upto 15 lakhs for Retails Business in Hyderabad.

J.YogaNathan

Jun 02, 2015 at 1:28 PM

Dear Sir,

I have started a new business in the field of Information Technology and EXIM services in Chennai. As a new entrepreneur I need a loan of 50 lac rupees. Please kindly arrange for me. My company is newly incorporated private limited company. Thanking you.

ruben walter

Jun 08, 2015 at 11:44 PM

Hello.
Do you need personal or business loan without stress and fast approval? If so, please contact us as we are now offering loans at prime interest rate. Our loan is secured and safe, for more information and applications, please reply to this e-mail. ([email protected]) the name and amount needed.

IndiaFilings

Jun 18, 2015 at 5:49 PM

Dear Sir,

Greetings from IndiaFilings.com, India’s premier online consulting co!!
It is our pleasure to assist you. We think it is better to have a telephonic conversation
With our business adviser, so kindly provide your contact number to guide you better.
Looking forward to work with you in the near future. Have a great day.

Thanks & Regards,
IndiaFilings Team

sunil

Jun 03, 2015 at 6:24 PM

Dear sir
I need loan for my business amt.950,000-/
Mobile app & web site . promote hotel booking & ad site

dhanraj prjapati

Jun 07, 2015 at 11:36 AM

Kya muje Lon mil sakti hai kya

ruben walter

Jun 08, 2015 at 11:42 PM

ruben walter

Jun 08, 2015 at 11:43 PM

ruben walter

Jun 08, 2015 at 11:42 PM

danishansari

Jun 21, 2015 at 2:36 AM

Hii sir mai hu uttar Pradesh se hu muje loon majburi hai

IndiaFilings

Jun 22, 2015 at 1:03 PM

Dear sir,
Greetings from IndiaFilings.com, India’s premier online consulting co!!
Please provide your email address and contact number, so that we can ask our business adviser to call you.
Looking forward to work with you in the near future. Have a great day.
Thanks & Regards,
IndiaFilings Team

Maheah B Walekar

Jun 28, 2015 at 7:47 PM

Hello, sir/madam,
I want advice for CGTMSE loan and how to prepare the project file, even if u have any agents’ address then tell me, i want to stand a manufacturing unit of plastic in Satara. My contact number 9960060261
thanks

IndiaFilings

Jun 29, 2015 at 9:53 AM

ashok kumar

Jul 04, 2015 at 9:12 AM

My number is 9414080058 loan rekwarment buffalo dairy project ke liye.

tejinder kumar

Jul 10, 2015 at 1:48 PM

I want a loan to start up a shop cum boutique. Required loan amount is 3,00,000.

niraj bharti

Jul 13, 2015 at 10:20 AM

dear sir
i need 1 lakh to start my business please help me.

su nil kumr

Jul 13, 2015 at 12:35 PM

I need a loan for my garment bussinessential.

rupali

Jul 17, 2015 at 12:26 PM

No bank is allowing under this scheme……. Pls help we need only 15 lacs. Regards Rupali 9425530260

rivafinanceloanlimited

Jul 20, 2015 at 1:18 AM

Loan Offer (private individuals, traders, entrepreneurs, civil servants, etc …)
– Annual interest rate: 2%.
– Type of offer
* Credit School
* Personal Loan\Business Loan
* Home Loan
* Auto Loan
* Investment Loan
* Acquisition of credit
For these above mentioned issues, please contact me via e-mail, because I very open and happy to help will be.
E-mail:[email protected]

Rachit Singh

Jul 29, 2015 at 10:36 PM

Hi,

I want to start my own web-designing company after 12th ( 6 months remaining ), I wanted to ask how can I get a loan of up to 10 lakhs.

I also need to know about would I be needed to provide any co-lateral or property to get the loan, or what are the terms and conditions.

pradeep gupta

Aug 02, 2015 at 6:55 PM

hi,
I am pradeep gupta registered with nsic i want without collateral loan for upgrade my bussiness how can i get

Kumar

Aug 04, 2015 at 2:52 PM

Hi,

We are planning setup e-commerce (FMCG Retail Business), will this possible to get a loan under this scheme CGTMSE.

Business Advisor

Aug 06, 2015 at 11:00 AM

Dear Sir,

Greetings from Indiafilings.com, India’s premier online consulting company !!!

We acknowledged the receipt of your mail. It’s our pleasure to assist you with your requirement, We think it is better to have a telephonic conversation with our business adviser for a detailed business commentary, so please let us know your contact number to guide you better.

Looking forward to work with you in the near future.

Thanks & Regards,
Indiafilings Team.

pmprakashpradhan

Oct 05, 2015 at 9:44 AM

sir I need twenty lacks to upgrade my business. I m doing trade business between India n China from nathula boarder in Sikkim.I have no any collateral. so pl help me
.to get loan. which bank is suitable for me. thank you

satyendra kumar

Oct 09, 2015 at 10:19 AM

kaminaaaaaaaaaaaaa

Jayanth

Oct 17, 2015 at 1:13 PM

Sir my name is Jayanth I am from tumkur I am looking to start an dairy farm so I need loan amount of 10 to 15 lakhs
I am not having any land documents because they are all in our ancestors name so if you are willing to give loan .plz contact me

Banarji

Oct 20, 2015 at 5:06 PM

Hi,
We approached HDFC bank in Kochi regarding this scheme. They mentioned that there is a mandate of 5 years age, which needs to be there for the company which is applying. Could you please clarify this?

Trilok singh

Oct 26, 2015 at 12:04 PM

i want loan how can i getvit pls help me

suneet kumar srivastava

Nov 04, 2015 at 6:28 PM

Resp sir gud evening aap key is sechme ke baarey me aur jankari chhiyey . Iski jankari kaisey hogi aur kaisey hum is suvidha ka labh le saktey hai aur iskey liyey kya kya papers deney parengay.

Rajveer gurjar

Nov 05, 2015 at 6:14 PM

Home loan

K Prashanth kumar

Nov 06, 2015 at 11:41 AM

I have my provision store near to my house can I apply for this Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) & wat is documents required & whom to approach for this & wat is the limit for a provision store,kindly provide the details thank you in advanc

ravishankar

Nov 09, 2015 at 10:46 AM

I need a loan for start a business and I have no any property to pludge .

Raju sharma

Nov 12, 2015 at 5:06 PM

I need loan of 3.5 lacs for furniture business

saravanapandiyan

Nov 24, 2015 at 9:44 AM

Dear Sir/madam we are arranging third party collateral documents project loan business loan sblc/bg Chennai

Arul

Dec 16, 2015 at 9:17 AM

Hi sir , I am Arul from Tamilnadu , I request needs loan from Msme, kindly support to guide me

Pankaj

Feb 10, 2016 at 4:27 PM

Hi,
i wanted to start an small unit of cotton ginning in near Nagpur.
I wanted to know how can I apply for this Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), what are the documents required & whom to approach for this.
Kindly provide the details thank you in advance.
Contact mail: [email protected]

IndiaFilings

Feb 19, 2016 at 6:23 AM

Hi Pankar, we can surely help. Please email your requirements to [email protected] or contact 044-40247777 to talk to an IndiaFilings Business Advisor. You can fill a loan application through IndiaFilings iCFO platform.

Thambi Thomas

Mar 14, 2016 at 8:46 PM

Dear Sirs,
Is there any maximum age limit to avail loan under these schemes?
Have you got any office in Kerala?
Is there any negative sector in manufacturing or in trading sector?
Can we directly approach the bank?
Thanks & Regards

Sumesh

Mar 16, 2016 at 6:49 PM

Hi Thambi,
you can discuss this with our Business Advisors. Please contact 04440247777 or email [email protected]

shruti

Apr 19, 2016 at 8:28 PM

I want to open a preschool in jalandhar, punjab but no bank is cooperating to provide me fully d’s without collateral. Kindly help.

Sumesh

Apr 20, 2016 at 10:29 AM

Hi shruti,
It’s our pleasure to help you I think it is better to have a telephonic conversation with our business adviser. please call 04440247777

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