Credit Guarantee Fund for Micro Units (CGFMU)

CGFMU is a trust fund set up by the Government of India, with NCGTC as its trustee. It guarantees payment against default on micro loans made by banks, NBFCs, microfinance institutions and other financial intermediaries to eligible borrowers.

What you get

• A micro loan from your lender that the lender can cover with a guarantee, so you do not have to offer collateral or a third-party guarantee.

Who can apply

• New or existing micro units and enterprises, including joint liability group and self-help group borrowers, taking micro loans from a registered lender.
• Loans in manufacturing and services, including retail trade, and loans for allied agricultural activities. Purely agricultural loans are not covered.
• Larger loans within the scheme's ceiling are open only to borrowers who earlier took and repaid a loan in the Tarun category.

How selection works: The lender decides. It may choose not to take up your application, based on whether your business is viable and whether your documents are sufficient.

How to apply: Approach a lender for the loan. The lender decides whether to request guarantee cover for it.