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Business & Entrepreneurship

Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Reimbursement of CGTMSE Fees

The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" launched by the Industries and Mines Department aims to position Gujarat as a global business hub, promoting sustainable manufacturing, MSME growth, and export competitiveness.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

Collateral-Free Loans: | - Government of India has instructed financial institutions to sanction collateral-free loans up to ₹2,00,00,000/-. | Support for MSEs: | - Assistance is provided to Micro and Small Enterprises (MSEs) under this scheme. | - Service fees charged by banks/financial institutions are eligible for reimbursement. | Annual Service Fees: | - 1st Year: 1.8% + Risk Premium. | - 2nd Year Onwards: 0.85% or as amended by CGTMSE/RBI. | Reimbursement Assistance: | - 100% reimbursement of the annual service fees paid by entrepreneurs for up to 5 years.

Who can apply

The firm must be a Micro/Small/Medium enterprise.; The enterprise must have availed of a collateral-free term loan under CGTMSE.; The application must be submitted within within one year from the date of first disbursement of Term loan, or on or before the date of commencement of commercial production, whichever is later.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)"?

The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" aims to position Gujarat as a global business destination by promoting sustainable manufacturing, inclusive development, and balanced regional growth.

What is the duration of the scheme?

The scheme is effective from August 7, 2020, and will remain in operation until August 6, 2025.

What is the objective of the component "Assistance for Reimbursement of CGTMSE Fees"?

The component provides financial support to Micro and Small Enterprises (MSEs) by reimbursing the annual service fees charged on collateral-free loans availed under the CGTMSE scheme.

Who is eligible to apply for this reimbursement?

Any Micro or Small Enterprise (MSE) that has availed of a collateral-free term loan under CGTMSE and meets the application criteria is eligible to apply.

How much reimbursement can an entrepreneur receive?

An entrepreneur can receive a 100% reimbursement of the annual service fees paid to the bank or financial institution for up to five years.

What is the service fee structure for CGTMSE loans?

In the 1st year, the service fee is 1.8% + Risk Premium, and from the 2nd year onwards, it is 0.85% or as revised by CGTMSE or RBI.

How long is the reimbursement assistance available?

The reimbursement assistance is available for a maximum period of five years.

Are service-based businesses eligible for this reimbursement?

No, service and trading activities are not eligible for this scheme. Only manufacturing and production-based enterprises can apply.

Can an entrepreneur apply if they have taken a secured loan?

No, this scheme is only applicable to collateral-free term loans sanctioned under CGTMSE.