Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Reimbursement of CGTMSE Fees
100% CGTMSE fee reimbursement · collateral-free loans up to ₹2 crore · Gujarat MSEs
Gujarat-based Micro, Small, and Medium Enterprises (MSMEs) that have taken a collateral-free term loan under the CGTMSE scheme can get their annual service fees reimbursed by the Gujarat government for up to 5 years. The scheme covers 100% of the CGTMSE annual service fees charged by banks, helping reduce the effective cost of credit for small businesses. Apply online through the Investor Facilitation Portal (ifp.gujarat.gov.in) within one year of the first loan disbursement.
About This Scheme
Gujarat-based Micro, Small, and Medium Enterprises (MSMEs) that have taken a collateral-free term loan under the CGTMSE scheme can get their annual service fees reimbursed by the Gujarat government for up to 5 years. The scheme covers 100% of the CGTMSE annual service fees charged by banks, helping reduce the effective cost of credit for small businesses. Apply online through the Investor Facilitation Portal (ifp.gujarat.gov.in) within one year of the first loan disbursement.
Full official description
The scheme "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from August 7th, 2020 to August 6th, 2025, this initiative supports entrepreneurs and strengthens MSMEs, making them globally competitive. The component "Assistance for Reimbursement of CGTMSE Fees" provides financial assistance for the implementation of Information and Communication Technology (ICT) infrastructure. The support covers equipment required for communication, networking, and cloud computing.
Benefits
- 100% reimbursement of annual CGTMSE service fees for up to 5 years
- Year 1 fee rate: 1.8% + risk premium; Year 2 onwards: 0.85% (or as amended by CGTMSE/RBI)
- Eligible for collateral-free loans sanctioned up to ₹2 crore
💡 Why Startups Should Care
Central government mandates collateral-free loans up to ₹2 crore for MSEs under CGTMSE — but the annual guarantee fees add up. This Gujarat scheme reimburses 100% of those fees, making collateral-free credit essentially free to access for asset-light micro and small enterprises.
Who Can Apply (Eligibility)
- Must be a Micro, Small, or Medium enterprise (registered under MSME/Udyam)
- Must have availed a collateral-free term loan under the CGTMSE scheme from a recognized bank or financial institution
- Apply within one year from the date of first loan disbursement, or before commercial production starts — whichever is later
- Enterprises in service or trading activities are not eligible
Exclusions
- Enterprises engaged in service or trading activities are not eligible
- Enterprises without a CGTMSE-backed loan are not eligible
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the CGTMSE Fee Reimbursement component.
- Fill in enterprise details and CGTMSE loan details.
- Upload the signed application form, Udyog Aadhaar/Udyam certificate, and CGTMSE fee payment receipts.
- Submit and note your Reference Number for annual reimbursement.
Frequently Asked 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.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Printed application form with declaration (signed by authorised person with stamp)
- Copy of acknowledgment of Udyog Aadhaar / Udyam registration
- CGTMSE fee payment receipts
- Bank loan sanction letter showing CGTMSE coverage