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CGTMSE Guarantee & Fee CalculatorCredit Guarantee Cover & Annual Fee Estimator

Estimate the guarantee coverage percentage and calculate the Annual Guarantee Fees (AGF) including 18% GST. Covers updated 2025 slabs for credit facilities up to ₹10 Crore with concession logic for women, SC/ST, NER, and ZED units.

Calculator Inputs

Min: ₹1 LakhMax: ₹10 Crore

Years

Min: 1 YearMax: 15 Years

% p.a.

Min: 5%Max: 25%

* Women, SC/ST, and PwD receive higher guarantee coverage limits and fee concessions.

Guarantee Cover
75.00%
Capped at 90%
Cover Amount
₹18,75,000
Collateral-Free Cover
Base AGF Rate
0.55%
Standard Slab Rate

Fee Amortization Summary

1st Year Guarantee Fee₹16,225₹13,750 fee + 18% GST (₹2,475)
Total Estimated Fee (5 Years)₹52,051Base: ₹44,111 | GST: ₹7,940
* Note: Subsequent year fees are charged on the outstanding loan balance at the beginning of each year. Values shown are estimates assuming regular monthly principal amortization.

Year-Wise Fee Projections

Reducing Balance
YearOutstanding (Start)Base AGF FeeGST (18%)Total Annual Fee
Year 1₹25,00,000₹13,750₹2,475₹16,225
Year 2₹20,98,737₹11,543₹2,078₹13,621
Year 3₹16,53,253₹9,093₹1,637₹10,730
Year 4₹11,58,675₹6,373₹1,147₹7,520
Year 5₹6,09,593₹3,353₹603₹3,956

Frequently Asked Questions on CGTMSE Scheme

Understanding collateral-free credit, guarantee fees, and coverage rules

What is CGTMSE Scheme?

The **Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)** was set up by the Government of India and SIDBI. It provides credit guarantees to financial institutions, offering up to **75% to 90% collateral-free cover** on loans extended to micro and small businesses.

Who pays the Annual Guarantee Fee (AGF)?

Although the Member Lending Institution (MLI/Bank) pays the AGF directly to CGTMSE to keep the guarantee active, banks almost always pass this cost on to the borrower. The fee is charged annually on the outstanding principal balance.

How are AGF rate concessions applied?

Under the revised April 2025 rules, eligible borrowers (women entrepreneurs, SC/ST, PwD, or units located in NER, J&K, Ladakh, and Aspirational Districts, as well as ZED-certified units) get a **10% concession (discount)** on the standard annual guarantee fee rate.

Is CGTMSE cover mandatory for Mudra Loans?

No. Mudra loans (up to ₹10-20 Lakhs) are covered under the **National Credit Guarantee Trustee Company (NCGTC)** rather than CGTMSE. CGTMSE is generally used for larger, collateral-free business loans, PMEGP, or general working capital and term loans up to ₹10 Crore.

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