MSME
Credit guarantee cover for micro and small enterprises raised from Rs 5 crore to Rs 10 crore
- Effective
- 2025-04-01
- Published
- 2025-12-30
- Authority
- Ministry of Micro, Small and Medium Enterprises / CGTMSE
From 1 April 2025 the ceiling of guarantee coverage under the Credit Guarantee Scheme for Micro and Small Enterprises was raised from Rs 5 crore to Rs 10 crore, and the annual guarantee fee for guarantees above Rs 1 crore was rationalised. The Ministry reported that 1,778 guarantees totalling Rs 12,498 crore had been approved in the Rs 5 crore to Rs 10 crore band in FY 2025-26 up to 31 December 2025.
Relevant to any MSE seeking collateral-free credit; the guarantee is availed through a member lending institution, not applied for directly. Corroborated by PIB PRID 2220403 of 29 January 2026.
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