Collateral-free credit:
One of the key features of the CGTMSE scheme is that it provides collateral-free credit to MSEs. This means that MSEs can avail loans without having to provide any collateral security, which is a major advantage for small businesses that do not have significant assets to pledge as collateral.

Low cost of borrowing:
Another important advantage of the CGTMSE scheme is that it provides credit at a low cost of borrowing. The interest rate on loans availed under the scheme is usually lower than that of other loans, which makes it easier for MSEs to repay their loans.

Wide coverage:
The CGTMSE scheme covers a wide range of MSEs, including those in the manufacturing, service, and trading sectors. This means that MSEs from different sectors can avail credit under the scheme, which makes it more accessible to a larger number of businesses.

Large loan amount:
Under the CGTMSE scheme, MSEs can avail loans of up to INR 2 crores. This allows MSEs to meet their financial requirements and expand their business operations without worrying about the availability of credit.

Quick disbursement:
Loans availed under the CGTMSE scheme are disbursed quickly, which helps MSEs meet their urgent financial needs. This is a significant advantage for small businesses that need credit to meet their day-to-day expenses or to fulfill orders from customers.

Simplified procedures:
The procedures for availing loans under the CGTMSE scheme are simple and easy to follow. This helps MSEs in availing credit without any hassle, which is especially important for small businesses that do not have the resources to navigate complex loan application processes.

Risk-sharing:
The CGTMSE scheme provides a risk-sharing mechanism to lenders. This means that in case of default by the borrower, the CGTMSE Trust settles the outstanding amount of the credit facility up to a certain percentage. This reduces the risk for lenders and encourages them to lend to MSEs that they might otherwise have considered too risky.

In conclusion, the CGTMSE scheme is a valuable initiative that has helped thousands of MSEs in India access credit without having to provide collateral security. The scheme’s features and advantages, such as collateral-free credit, low cost of borrowing, wide coverage, large loan amount, quick disbursement, simplified procedures, and risk-sharing, have made it a popular choice among small businesses in India.