December 20, 2025 Summary: To tackle the credit gap, the government has enhanced the ceiling of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The guarantee cover has been raised from ₹5 crore to ₹10 crore. This allows MSMEs to seek larger capital for machinery and technology upgradation without the burden of providing physical collateral to banks.
CGTMSE Ceiling Raised: Collateral-Free Loans Now Up to ₹10 Crore
