CGTMSE Fee Calculator
Work out your CGTMSE annual guarantee fee, GST and year-wise charges in seconds, using the fee slabs effective 1 April 2025.
The CGTMSE fee is the annual guarantee fee (AGF) charged on loans covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises. From 1 April 2025, it ranges from 0.37% a year for loans up to ₹10 lakh to 1.20% a year for loans of ₹8–10 crore, plus 18% GST.
This CGTMSE fee calculator works out your first-year guarantee fee, GST and the year-wise charges over the loan period. Enter the loan amount, loan type and borrower category above to see your exact cost.
Key takeaways
- The CGTMSE fee depends on the loan slab, not your interest rate.
- The first year is charged on the full sanctioned amount; later years on the outstanding balance.
- Special categories such as women and SC/ST borrowers get a 10% concession.
- GST at 18% is added to the guarantee fee.
How to Use the CGTMSE Fee Calculator
- Enter the loan amountType the sanctioned credit facility. CGTMSE covers loans up to ₹10 crore.
- Choose the loan typeA term loan reduces each year; a cash credit limit is renewed at the full amount.
- Add rate and periodThe rate and tenure work out the outstanding balance for later years.
- Pick your categorySelect a special category if it applies, and the lender pricing if your bank told you.
- Read the resultSee the first-year fee, GST and a year-wise table you can print.
CGTMSE Fee Structure from 1 April 2025
CGTMSE cut its fee for larger loans in March 2025, after raising the guarantee ceiling from ₹5 crore to ₹10 crore. The table shows the standard rates and the yearly fee at the top of each slab:
| Loan amount | CGTMSE fee (% a year) | Fee at top of slab |
|---|---|---|
| Up to ₹10 lakh | 0.37% | ₹3,700 |
| Above ₹10 lakh to ₹50 lakh | 0.55% | ₹27,500 |
| Above ₹50 lakh to ₹1 crore | 0.60% | ₹60,000 |
| Above ₹1 crore to ₹2 crore | 0.85% | ₹1,70,000 |
| Above ₹2 crore to ₹5 crore | 1.00% | ₹5,00,000 |
| Above ₹5 crore to ₹8 crore | 1.10% | ₹8,80,000 |
| Above ₹8 crore to ₹10 crore | 1.20% | ₹12,00,000 |
These rates apply to guarantees approved or renewed on or after 1 April 2025, as per the CGTMSE circular. You can check the latest notices on the official CGTMSE website.
How CGTMSE Charges Are Calculated
- Slab rate: the rate depends on the total credit facility covered.
- First year: the fee is charged on the full sanctioned amount.
- Later years: the fee is usually charged on the outstanding amount. For a cash credit limit, the full limit is renewed each year.
- Concession: special categories get 10% off the fee.
- Lender pricing: a lender with a strong record may get a 10% discount, while a high-risk lender may pay a risk premium.
- GST: 18% GST is added to the fee.
CGTMSE fee example
A trader takes a ₹25 lakh term loan for 5 years at 10%. The slab rate is 0.55%, so the first-year fee is ₹13,750. GST adds ₹2,475, so the first-year cost is ₹16,225. In Year 2, the outstanding balance falls to about ₹20.94 lakh, so the fee drops to about ₹11,519. As a result, the total cost over 5 years, including GST, is about ₹51,893.
If the same borrower is a woman entrepreneur, the 10% concession cuts the rate to 0.495%. Consequently, the first-year fee falls to ₹12,375 before GST.
Your bank decides how the fee is collected. Some banks absorb it, while others add it to your loan cost. Always ask for the fee in writing before you sign.
Who Is Eligible for a CGTMSE Guarantee?
New and existing micro and small enterprises in manufacturing, services and retail trade can get loans covered by CGTMSE. The loan must come from a member lending institution, such as a bank or eligible NBFC, without collateral or a third-party guarantee. Furthermore, the trust covers a large share of the lender’s loss if the loan defaults, which is why banks can lend without security.
Plan the Rest of Your Loan
A guarantee is only one part of a loan application. Next, check your repayment strength with the DSCR calculator, and estimate your limit with the working capital loan calculator. In addition, build your project report or CMA data, and compare schemes in our business loan scheme guides.
Frequently Asked Questions
What is the CGTMSE fee?
The CGTMSE fee is an annual guarantee fee (AGF) paid for the credit guarantee on a collateral-free MSE loan. From 1 April 2025, it ranges from 0.37% to 1.20% a year depending on the loan amount, plus 18% GST.
Is the CGTMSE fee charged every year?
Yes. The guarantee fee is charged every year while the guarantee runs. The first year is charged on the full sanctioned amount, and later years are usually charged on the outstanding amount of a term loan.
What is the CGTMSE fee for a ₹10 lakh loan?
For a loan of ₹10 lakh, the fee is 0.37%, or ₹3,700 a year. With 18% GST, the first-year cost is ₹4,366.
Who pays the CGTMSE charges?
The lending bank pays the fee to the trust. However, most banks recover it from the borrower, so ask your bank how it will be charged.
Do women entrepreneurs get a lower CGTMSE fee?
Yes. Women, SC/ST, PwD and Agniveer borrowers, units in the North East, J&K, Ladakh and aspirational districts, and ZED-certified units get a 10% concession on the fee.
What is the maximum loan covered under CGTMSE?
CGTMSE covers credit facilities of up to ₹10 crore to eligible micro and small enterprises without collateral or a third-party guarantee.
Business Reports is an independent information website. We are not affiliated with, endorsed by or acting for any government department, bank, NBFC, KVIC, NABARD, SIDBI or MUDRA, and we do not provide loans or process applications. Figures are indicative; confirm details on official portals or with your bank. Read our disclaimer and advertising disclosure.