Business loan by type
Business Loan for MSME.
Udyam-registered MSMEs can access collateral-free guarantee cover up to ₹10 crore through CGTMSE — see your EMI below.
- Principal amount
- ₹15,00,000
- Total interest
- ₹4,79,340
- Total amount
- ₹19,79,340
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹2,35,524 | ₹1,60,344 | ₹12,64,474 |
| 2 | ₹2,64,086 | ₹1,31,782 | ₹10,00,389 |
| 3 | ₹2,96,108 | ₹99,760 | ₹7,04,281 |
| 4 | ₹3,32,014 | ₹63,854 | ₹3,72,267 |
| 5 | ₹3,72,267 | ₹23,594 | ₹0 |
How CGTMSE cover works
CGTMSE provides a government guarantee on business loans — up to ₹10 crore collateral-free — so banks lend to MSMEs without requiring pledged assets, since the guarantee absorbs most of the lender's risk on default. Udyam registration is a prerequisite for almost all MSME-specific schemes, including this one.
Frequently asked questions
What is CGTMSE and how does it help MSME loans?
The Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) provides a government guarantee cover on business loans — up to ₹10 crore collateral-free — so banks are willing to lend to MSMEs without requiring the borrower to pledge assets, with the guarantee absorbing most of the lender's risk if the loan defaults.
Do I need Udyam registration to access MSME loan schemes?
Yes, in almost all cases — Udyam registration is the official way to be classified as a micro, small, or medium enterprise in India, and most government-backed schemes (CGTMSE, Mudra, Stand-Up India) require it as a prerequisite for eligibility.
How is an MSME loan different from a regular business loan?
The underlying loan product is often similar, but MSME-specific schemes typically come with a government guarantee (reducing or eliminating collateral requirements), sometimes a concessional rate, and eligibility tied specifically to your Udyam classification and turnover/investment thresholds.