CGTMSE stands for Credit Guarantee Fund Trust For Micro and Small Enterprises. My Mudra CGTMSE Loans are collateral-free loan facilities designed for Micro and Small Enterprises (MSEs).
Apply Now Contact Us
Interest Rates & Charges
As a practice, the CGTMSE Loans interest rate ranges between 14 to 18%. The interest rates include the guarantee cover as well. CGTMSE scheme terms and conditions have gone through multiple changes. Now the fee is charged only on the guarantees amount during the first year of the loan. After the first year, fee is charged on the outstanding amount only. The similar process continues for the subsequent years.
The interest rates for CGTMSE Loans can be either fixed or at a diminishing rate of interest (also known as the reducing balance rate). The former will remain constant throughout the loan period whereas the next one will be applicable on the balance of your principal amount only.
|
Category |
The maximum amount of credit facility |
||
|
Up to Rs. 5 lakh |
More than Rs. 5 lakh to Rs. 50 lakh |
More than Rs.50 lakh to Rs. 2 crores |
|
|
Micro Enterprises |
85 % of the default amount maximum of Rs. 4.25 lakhs. |
75 % of the default amount maximum of Rs. 37.50 lakhs. |
75% of the default amount maximum Rs.1.5 crores |
|
Women and Units in NER |
80%t of the default amount maximum Rs.40 lakhs for credit facility up to Rs.50 lakhs. |
||
|
All others |
75% of the default amount maximum Rs.40 lakhs for credit facility up to Rs.50 lakhs. |
||
|
Business activity |
Credit from Rs.10 lakhs to Rs. 1 crore |
||
|
MSE Retail Trade |
50% of the default amount maximum of Rs.50 lakhs. |
||
There are two kinds of CGTMSE Loans interest rates: fixed and floating.
Here, the rate of interest charged on the CGTMSE Loans amount will remain constant throughout the loan repayment period. You know your CGTMSE Loans EMI obligation at the start of the tenor, allowing you to plan your monthly budget accordingly.
Here, CGTMSE Loans interest rates could change depending on changes to the Marginal Cost of Lending Rate (MCLR), which is the base rate set for banks by the RBI. With changes in MCLR, the interest rate on loans also gets revised. With a lower interest rate, the repayment amount also reduces. On the other hand, if the interest rates increase, your EMI obligation will also increase. A floating CGTMSE Loans interest rate makes it difficult for you to ascertain your monthly financial obligation.
There are two methods to calculate interest: flat rate method and the reducing balance method.
In the flat interest rate method, the interest rate is based on the complete loan amount you pay during the repayment period. In case of reducing the balance method, the rate of interest on the CGTMSE Loans will be considered and calculated on the basis of the outstanding loan amount.
Where, ‘P’ is the principal loan amount, ‘r’ is the rate of interest, and ‘n’ is the loan tenure in months.
Where, ‘P’ is the principal loan amount, ‘r’ is the rate of interest, and ‘n’ is the loan tenure in months.
You are doing an awesome work as team. Faster service with immediate response is quite amazing. Will recommend to everyone in need, faster documents processing …….Keep up the good work
Amazing. Dedicated. Professional. I came through a reference from my Aunt. I was getting a personal loan for the first time. I was nervous. But they made me sail through the loan application process. Good work. Definitely recommend
Folks, they are very quick with their services. I actually didn't know there were so many conditions for getting a loan. My documents weren't proper as well. They really helped me pick up my profile. Also, they give you helpful suggestions regarding which banks should I opt for.
Excellent service from all team members. All are supportive. Its different from others NBFCs. Now and in future, My Mudra is my first choice for financial needs.
The service provided by My Mudra is great, everything is seamless and very convenient. Its one of the very best experiences, I’ve had with any loan provider.
I was in dire need of funds for a medical emergency. Due to my low CIBIL score, I didn’t much get support from other lenders. This is when I submitted a personal loan application on My Mudra. Fortunately, I got the amount, and that too at lower interest rates. Thanks to My Mudra. The entire application was very smooth.
I have had a wonderful experience with My Mudra. The process was exceptionally seamless when I applied for a loan. I also liked how their people interacted with me. It is the best solution to the month-end cash issue. Also, I can use it to pay off my credit card dues.
To realize my business plans, I decided to take My Mudra Business loan and my decision was perfectly alright. It assured me of fast money and the entire process was transparent. No surprise loan charges helped me plan my working capital and manage my business activities efficiently.
I was in need of INR 2 lakh. I visited the My Mudra website and found out that there is a personal loan offer for me. It was a great experience. I got an awesome deal on my loan application. The process involved only a few documents. The amount transferred to my account was faster than promised and the interest rate and other charges were also not too high
I wanted quick fund disbursal and one of my friends suggested me to apply for a personal loan from My Mudra. He had a great experience. I agree with him. The application and approval process were smooth. They offer fast money transfers to my bank. I was asked to choose the repayment period. I am happy with the services. Their agents are also polite and helpful.
We collaborate with the best and biggest in the banking & financial world to get you relevant products at great rates.
Apply Now
We employ best-in-class security practices and procedures to keep your information secure every time.
From taking regular backups to using stronger passwords, we strictly prohibit any kind of unauthorized access of your crucial data, corruption, or theft throughout its life cycle.
We identify all the different ways your privacy could be at risk and have prepared safeguards to help you protect yourself online with us. Your privacy is important to us.
We are ISO 27001:2013 and SOC2 Type 2 compliant which instills trust into the hearts of our customers. We are secured with SSL and a certified GSP (GST Suvidha Provider).
Our blogs are where you get the latest news along with insights from industry experts.
Check
Credit Score
