CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is set up jointly by the Government of India (Ministry of MSME) and SIDBI. It enables collateral-free loans up to ₹2 crore for Micro and Small enterprises (Medium enterprises are NOT eligible).

What credit score is needed for MSME loans?

Most banks prefer CIBIL 700+ for MSME loans. MUDRA Shishu/Kishore are more relaxed for first-time borrowers. CGTMSE requires an acceptable profile. Below 650 significantly limits options.

MSME Loan Eligibility

Q: What is the Udyam MSME classification in India?

Micro: Turnover ≤ ₹5 crore AND Investment ≤ ₹1 crore. Small: Turnover ≤ ₹50 crore AND Investment ≤ ₹10 crore. Medium: Turnover ≤ ₹250 crore AND Investment ≤ ₹50 crore. Both criteria must be met simultaneously. Per Ministry of MSME Udyam Notification, 2020.

Q: What is MUDRA Tarun Plus?

MUDRA Tarun Plus was announced in Union Budget 2024-25. It offers loans of ₹10 lakh to ₹20 lakh to borrowers who have successfully repaid a previous MUDRA Tarun loan, rewarding creditworthy micro-entrepreneurs with a higher loan tier.

Q: Who qualifies for Stand-Up India?

SC/ST or Women entrepreneurs setting up a greenfield (new) enterprise in manufacturing, services or trading. At least 51% ownership must be held by the SC/ST/Women beneficiary. Available through Scheduled Commercial Banks. Loan range: ₹10 lakh to ₹1 crore.

Answer a few questions and instantly see which government loan schemes you qualify for — MUDRA, CGTMSE, Stand-Up India, Tarun Plus and more. Based on current Ministry of MSME norms. No signup, no data stored.

Business Details

Business Type

Years in Operation

Udyam (MSME) Registration

Required for CGTMSE and most government MSME schemes. Register free at udyamregistration.gov.in

Financial Details — Last Financial Year (FY 2024-25) * Required

Annual Turnover *

₹

Total revenue — ₹30 lakh = 3000000 · ₹5 crore = 50000000

⚠ Annual turnover is required to determine MSME classification.

Investment in Plant / Equipment *

₹

Net book value of machinery & equipment (exclude land & building). Enter 0 for pure service businesses.

⚠ Investment amount is required. Enter 0 if your business has no plant or equipment.

Existing Bank Loans / Active EMIs

Applicant Profile

Applicant Category

CIBIL / Credit Score Range

Check free once/year at cibil.com

Primary Loan Purpose

Loan Amount Needed optional

₹

Helps recommend the right scheme tier

Optional — MUDRA History

I have previously taken and successfully repaid a MUDRA Tarun loan — qualifies me for MUDRA Tarun Plus (₹10L–₹20L, Union Budget 2024-25)

Legal Disclaimer & Important Information

Indicative Screening: This tool provides an indicative eligibility assessment based on public Government of India guidelines for MSME schemes. Actual eligibility is determined solely by the lending institution.
Final Authority: All loan approvals, interest rates, and terms are subject to the credit assessment and internal policies of the respective Bank, NBFC, or Financial Institution.
Budget 2024-2025 Updates: Results include recent announcements like MUDRA Tarun Plus (up to ₹20 lakh). Implementation timelines and requirements may vary across different Scheduled Commercial Banks.
No Liability: Tradesala does not provide financial or legal advice. We are not responsible for any decisions made or actions taken based on the results of this tool.
Verification: Always verify current scheme norms and interest rates on official portals like msme.gov.in, udyamimitra.in, and mudramitra.in.

Frequently Asked Questions

MSME classification, loan schemes and eligibility — per current Government of India norms.

What is the Udyam MSME classification in India?+

Per Ministry of MSME Udyam Notification, June 2020: Micro = Turnover ≤ ₹5 crore AND Investment ≤ ₹1 crore. Small = Turnover ≤ ₹50 crore AND Investment ≤ ₹10 crore. Medium = Turnover ≤ ₹250 crore AND Investment ≤ ₹50 crore. Both criteria must be met simultaneously. For manufacturing, "investment" means plant and machinery (excluding land and building). For services, it means equipment.

What is MUDRA Tarun Plus and who qualifies?+

MUDRA Tarun Plus was announced in Union Budget 2024-25. It extends the Tarun tier with loans of ₹10 lakh to ₹20 lakh for micro-entrepreneurs who have successfully repaid a previous MUDRA Tarun loan. It recognises creditworthy borrowers who have "graduated" from the Tarun tier. Apply through the same banks and MFIs that offered the original Tarun loan.

What is CGTMSE and what does collateral-free mean?+

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is set up jointly by the Government of India (Ministry of MSME) and SIDBI. It enables banks to give loans of up to ₹2 crore without requiring collateral or third-party guarantees — the Trust guarantees 75–85% of the loan in case of default. Only Micro and Small enterprises are eligible — Medium enterprises are not covered. Udyam registration is strongly recommended before applying.

Who qualifies for Stand-Up India?+

Stand-Up India is administered by the Dept. of Financial Services, Ministry of Finance. It offers ₹10 lakh–₹1 crore to SC/ST or Women entrepreneurs setting up a greenfield (new) enterprise in manufacturing, services or trading. Key conditions: at least 51% ownership must be held by the SC/ST/Women beneficiary; the borrower must not be in default to any bank or financial institution. Loans are disbursed through Scheduled Commercial Banks (SCBs) — one SC/ST loan and one women's loan per bank branch.

Is Udyam registration mandatory for MSME loans?+

Not legally mandatory to apply, but most PSBs require it for CGTMSE-backed loans and government MSME schemes. It officially classifies your enterprise and unlocks priority sector lending rates. Register free at udyamregistration.gov.in — takes under 10 minutes with Aadhaar and PAN.

What credit score do I need for an MSME loan?+

Most PSBs prefer CIBIL 700+. For MUDRA Shishu/Kishore, requirements are relaxed — first-time borrowers with thin credit files are considered. CGTMSE-backed loans require an acceptable profile but have no hard cutoff. Below 650 significantly limits options. Check your score free at cibil.com once per year.