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Launched in 2000, the CGTMSE scheme is a loan subsidy scheme that offers credit guarantee to over 100 Banks to offer funds and collateral-free business loans to micro and small enterprises. In April 2023, the credit facility ceiling was increased to ₹5 crore to enable more businesses to avail the benefits of the Credit Guarantee loan scheme. Under this scheme, when a Bank lends funds to a borrower, it is backed by the scheme and provides coverage for up to 75-85% of the loan amount. This reduces
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