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Kotak Bank CGTMSE Loan
The Kotak CGTMSE loan is a funding solution that provides credit guarantees to Micro and Small Enterprises (MSEs) sans the need for collateral or a third-party guarantee. This initiative is powered by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), a trust set up by the Indian Government under theSmall Industries Development Bank of India (SIDBI) and the Ministry of Micro, Small, and Medium Enterprises (MoMSME). The scheme's primary objective is to extend financial aid to MSEs in manufacturing and service sectors, devoid of any external collateral or third-party guarantee. The upper limit for loans under this scheme is Rs 1 crore¹.Powered By
Kotak Bank CGTMSE Loan
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Here are a few factors
| Location | Applicant buisnes should be within 40Km from Lending Branch Jurisdiction |
| CIBIL Score | 700+ |
| Eligible Applicant | Any MSME |
| Loan Amount | Upto 5 Cr |
| Loan Type | Overdraft Limit & Term Loan |
| Loan Tenure | Overdraft Limit-1 Year (renewable after 1 year) & Term Loan-3to 7 year according to project |
| Rate of Interest & Type | 9.50%-11% (Fixed) |
| TAT | 15 days |
| Processing Fees | 0.50% to 1.50% |
| CGTSME Charges | As per Slab |
| Turnover Criteria | 40 Lac-100 Cr |
| Foreclosure Charges | Nil |
| Minimum Business Vintage | 3 Year |
| Co-Applicant Required | Yes, where applicant is other than individual |
| Co-Applicant Age | 21 year to 65 year |
| Collateral Required | No |
| Cautious Profile | Person living in dominated area, Applicant doing trade in highly risky profile |
| Negative Profile | Applicant who is having working capital exposure from any other Bank |
| USP | OD Limit upto 20% of Turnover |
| Additional | 1.
Applicant CMR rating should be< 5 2.Applicant Leverage ration should be less than 5 3. Applicant financial should be supportive for working capital assessment 4. Applicant TOL/TNW>2.5 times |
Save Your Time with a Simple Loan Process
Visit Our Website
For the first step, you will have to visit our website to explore the loan options that fit your needs.
Select and Apply
Once you shortlist the loan you have been looking for, apply for it, and proceed with the further process.
Submit Your Document
One of the most important steps. Now you will have to submit all the required documents digitally.
Enjoy Your Financial Freedom!
Once your application is approved based on your eligibility, you will receive your loan amount shortly.
Documents required for Kotak Bank CGTMSE loan
PAN Card
Aadhaar Card
Driving Licence
Loan repayment track (if any).
Vehicle details
Registered rent agreement
Current Job identity proof
Company ITR documents
Salaried income documents
Last 6 months' bank statement
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Eligibility |
Documents Required |
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Key aspects and advantages of the Kotak CGTMSE loan include:
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Exemption from guarantee fees for eligible NBFC-MFI/MFIs
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Affordable lending rates offered by Kotak Mahindra Bank; exceeding 1Y MCLR by just 2%
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Interest rates set by NBFC-MFI/MFI for its borrowers to be at minimum 2% below the highest rates prescribed by RBI
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Provision of guarantee cover for 75%-85% of the loan sum
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Customizable repayment alternatives
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Simplified and efficient application procedure
To apply for the Kotak CGTMSE loan, the following steps should be undertaken:
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Register the business entity as per its nature and secure the relevant approvals and tax registrations
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Draft an exhaustive business plan detailing the business model, forecasted financials, promoter profile, etc.
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Submit the business plan and loan application to any eligible lending institution
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The institution will evaluate the proposal and approve the loan if it aligns with their criteria
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The institution will then request CGTMSE for guarantee cover
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Upon approval of the guarantee cover, the loan sum will be disbursed to the borrower
Let us take an example, How EMI is being calculated
| Year | Principal (A) |
Interest (B) |
Total Payment (A + B) |
Balance | Loan Paid To Date |
|---|---|---|---|---|---|
| 2022 | ₹ 11,363 | ₹ 5,969 | ₹ 17,333 | ₹ 88,637 | 11.36% |
| Aug | ₹ 2,217 | ₹ 1,250 | ₹ 3,467 | ₹ 97,783 | 2.22% |
| Sep | ₹ 2,244 | ₹ 1,222 | ₹ 3,467 | ₹ 95,539 | 4.46% |
| Oct | ₹ 2,272 | ₹ 1,194 | ₹ 3,467 | ₹ 93,267 | 6.73% |
| Nov | ₹ 2,301 | ₹ 1,166 | ₹ 3,467 | ₹ 90,966 | 9.03% |
| Dec | ₹ 2,329 | ₹ 1,137 | ₹ 3,467 | ₹ 88,637 | 11.36% |
| 2023 | ₹ 30,332 | ₹ 11,266 | ₹ 41,598 | ₹ 58,305 | 41.70% |
| Jan | ₹ 2,359 | ₹ 1,108 | ₹ 3,467 | ₹ 86,278 | 13.72% |
| Feb | ₹ 2,388 | ₹ 1,078 | ₹ 3,467 | ₹ 83,890 | 16.11% |
| Mar | ₹ 2,418 | ₹ 1,049 | ₹ 3,467 | ₹ 81,472 | 18.53% |
| Apr | ₹ 2,448 | ₹ 1,018 | ₹ 3,467 | ₹ 79,024 | 20.98% |
| May | ₹ 2,479 | ₹ 988 | ₹ 3,467 | ₹ 76,545 | 23.45% |
| Jun | ₹ 2,510 | ₹ 957 | ₹ 3,467 | ₹ 74,036 | 25.96% |
| Jul | ₹ 2,541 | ₹ 925 | ₹ 3,467 | ₹ 71,495 | 28.51% |
| Aug | ₹ 2,573 | ₹ 894 | ₹ 3,467 | ₹ 68,922 | 31.08% |
| Sep | ₹ 2,605 | ₹ 862 | ₹ 3,467 | ₹ 66,317 | 33.68% |
| Oct | ₹ 2,638 | ₹ 829 | ₹ 3,467 | ₹ 63,679 | 36.32% |
| Nov | ₹ 2,671 | ₹ 796 | ₹ 3,467 | ₹ 61,009 | 38.99% |
| Dec | ₹ 2,704 | ₹ 763 | ₹ 3,467 | ₹ 58,305 | 41.70% |
| 2024 | ₹ 35,208 | ₹ 6,390 | ₹ 41,598 | ₹ 23,097 | 76.90% |
| Jan | ₹ 2,738 | ₹ 729 | ₹ 3,467 | ₹ 55,567 | 44.43% |
| Feb | ₹ 2,772 | ₹ 695 | ₹ 3,467 | ₹ 52,795 | 47.20% |
| Mar | ₹ 2,807 | ₹ 660 | ₹ 3,467 | ₹ 49,988 | 50.01% |
| Apr | ₹ 2,842 | ₹ 625 | ₹ 3,467 | ₹ 47,147 | 52.85% |
| May | ₹ 2,877 | ₹ 589 | ₹ 3,467 | ₹ 44,270 | 55.73% |
| Jun | ₹ 2,913 | ₹ 553 | ₹ 3,467 | ₹ 41,356 | 58.64% |
| Jul | ₹ 2,950 | ₹ 517 | ₹ 3,467 | ₹ 38,407 | 61.59% |
| Aug | ₹ 2,986 | ₹ 480 | ₹ 3,467 | ₹ 35,420 | 64.58% |
| Sep | ₹ 3,024 | ₹ 443 | ₹ 3,467 | ₹ 32,397 | 67.60% |
| Oct | ₹ 3,062 | ₹ 405 | ₹ 3,467 | ₹ 29,335 | 70.67% |
| Nov | ₹ 3,100 | ₹ 367 | ₹ 3,467 | ₹ 26,235 | 73.76% |
| Dec | ₹ 3,139 | ₹ 328 | ₹ 3,467 | ₹ 23,097 | 76.90% |
| 2025 | ₹ 23,097 | ₹ 1,169 | ₹ 24,266 | ₹ 0 | 100.00% |
| Jan | ₹ 3,178 | ₹ 289 | ₹ 3,467 | ₹ 19,919 | 80.08% |
| Feb | ₹ 3,218 | ₹ 249 | ₹ 3,467 | ₹ 16,701 | 83.30% |
| Mar | ₹ 3,258 | ₹ 209 | ₹ 3,467 | ₹ 13,443 | 86.56% |
| Apr | ₹ 3,298 | ₹ 168 | ₹ 3,467 | ₹ 10,145 | 89.86% |
| May | ₹ 3,340 | ₹ 127 | ₹ 3,467 | ₹ 6,805 | 93.19% |
| Jun | ₹ 3,381 | ₹ 85 | ₹ 3,467 | ₹ 3,424 | 96.58% |
| Jul | ₹ 3,424 | ₹ 43 | ₹ 3,467 | ₹ 0 | 100.00% |
FREQUENTLY ASKED QUESTIONS
The Kotak CGTMSE Loan Program is a financing
initiative that provides unsecured loans to Micro and Small Enterprises (MSEs).
This initiative is supported by the Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE), a collaboration between the Indian Government and
the Small Industries Development Bank of India (SIDBI).
Both emerging and established MSEs engaged in
manufacturing or service sectors, including retail trade, can apply. Applicants
need a minimum credit score of 650, and their business should have been
operational and profitable for at least 3 years and 2 years respectively.
You can avail a loan up to Rs 1 crore under the
Kotak CGTMSE Loan scheme.
The interest rates for the Kotak CGTMSE Loan are
set competitively and will not exceed 2% above the 1-year MCLR.
Begin by registering your business entity and
developing a business plan. Then, approach a qualified lending institution with
your loan application and business plan. Upon approval, the lending institution
will apply for a guarantee cover. Once the guarantee cover is authorized, you
will receive your loan amount.
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