About the CGTMSE Fee
The CGTMSE fee calculator estimates the annual guarantee fee on a collateral-free loan covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises. Enter the loan amount, say whether you fall in a concession category, and the tool shows the approximate yearly fee in rupees and the percentage rate applied to your slab.
It helps micro and small enterprises that want bank credit without pledging property or arranging a third-party guarantee, and the accountants who advise them. The guarantee fee is usually recovered from the borrower, so knowing it in advance lets you compare the real cost of a CGTMSE-backed loan with the cost of a loan secured by collateral.
The fee depends on the loan slab and on any concession. The tool applies 0.37% a year up to ₹10 lakh, 0.55% up to ₹50 lakh, 0.60% up to ₹1 crore, 0.75% up to ₹2 crore and 0.85% up to ₹5 crore, with roughly 10% off for women, SC/ST, North-East and ZED-certified units. These rates are revised periodically.
How to use it
- 1Enter the loan amount you plan to borrow, up to ₹5 crore.
- 2Select Yes if the unit is women-owned, SC/ST-owned, located in the North-Eastern Region or ZED-certified.
- 3Read the approximate annual guarantee fee and the fee rate applied, and factor the fee into your cost of borrowing.
How this is calculated
Annual guarantee fee = loan amount × slab rate × concession factor. Slab rates used: up to ₹10 lakh 0.37%; above ₹10 lakh to ₹50 lakh 0.55%; above ₹50 lakh to ₹1 crore 0.60%; above ₹1 crore to ₹2 crore 0.75%; above ₹2 crore to ₹5 crore 0.85% a year. Concession factor = 0.9 for women, SC/ST, North-Eastern Region and ZED-certified units, otherwise 1. Amounts above ₹5 crore are not calculated.
Frequently asked questions
What is the CGTMSE annual guarantee fee?
It is the yearly charge CGTMSE levies on the lender for guaranteeing a collateral-free loan to a micro or small enterprise. Lenders generally pass this cost on to the borrower. The fee is a percentage of the guaranteed amount, and the percentage depends on the size of the loan and the borrower category.
Which fee slabs does this CGTMSE fee calculator use?
It applies 0.37% a year for loans up to ₹10 lakh, 0.55% up to ₹50 lakh, 0.60% up to ₹1 crore, 0.75% up to ₹2 crore and 0.85% up to ₹5 crore. CGTMSE has revised its fee structure and coverage ceiling more than once, so confirm the current rates on cgtmse.in or with your bank.
Who gets a concession on the guarantee fee?
The tool reduces the fee by about 10% when you select the concession option, which covers women entrepreneurs, SC/ST entrepreneurs, units in the North-Eastern Region and ZED-certified units. The actual list of concession categories and the discount are decided by CGTMSE and can change, so check the latest circular before relying on the figure.
Is the guarantee fee paid once or every year?
It is an annual fee, payable for as long as the guarantee cover continues. The calculator shows the fee on the full amount you enter, which approximates the first year. In later years the charge is typically based on the outstanding balance, so it tends to fall as a term loan is repaid.
Does a CGTMSE-covered loan need any collateral?
The purpose of the scheme is to let eligible micro and small enterprises borrow without collateral security or a third-party guarantee, which is why the tool shows collateral needed as none. The lender still assesses your project, repayment capacity and credit history, and may take a charge on the assets created out of the loan.
What if my loan requirement is above ₹5 crore?
The calculator is built around a ₹5 crore ceiling and shows a notice instead of a fee for larger amounts. Because the coverage ceiling has been revised over the years, ask your lender or check cgtmse.in for the limit that applies today and for the fee on higher slabs.