The “Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)” is an umbrella initiative launched by the Industries and Mines Department, Government of Gujarat, to promote and strengthen the MSME sector in Gujarat. The scheme is valid from August 7, 2020, to August 6, 2025, and supports competitiveness, sustainability, and growth.
The specific component, “Assistance for Reimbursement of CGTMSE Fees,” aims to financially assist MSMEs availing collateral-free term loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) by reimbursing annual service fees for up to five years.
Benefits
• Collateral-Free Loans:
Government of India allows banks to sanction collateral-free loans up to ₹2 crore under CGTMSE.
• Service Fee Reimbursement:
• 1st Year: 1.8% + Risk Premium (as applicable)
• 2nd Year Onwards: 0.85% (or as amended by CGTMSE/RBI)
• 100% reimbursement of CGTMSE annual service fees for up to 5 years
Eligibility
• The enterprise must be Micro or Small (MSE).
• The unit must have availed a collateral-free loan under the CGTMSE scheme.
• The application must be submitted within 1 year of the first disbursement of the term loan or before commencement of commercial production, whichever is later.
Exclusions
• Trading and service-based activities are not eligible.
• Enterprises that have not availed CGTMSE loans are not eligible.
• Secured loans do not qualify for reimbursement under this scheme.
Application Process
Online Process
Registration
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Visit the Investor Facilitation Portal (IFP)
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Click on “New Investor Registration”
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Fill out the registration form and submit
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Verify the email ID via the link received in your inbox
Post-Registration
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Go to the IFP portal and click Login
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Enter your credentials and log in
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Complete your business profile and upload all mandatory documents
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Submit the application for CGTMSE fee reimbursement
Documents Required
• Printed application form with declaration, signed by authorized person
• Udyam / Udyog Aadhaar Registration acknowledgment
• Term loan sanction letter
• First disbursement certificate or term loan account statement
• Enterprise constitution (partnership deed, MoA, etc.)
• DPR (for projects up to ₹5 Cr) or bank appraisal report (for projects above ₹5 Cr)
• GST registration (if applicable)
• PAN card of enterprise
• ITR of last financial year (new enterprises can submit self-declaration)
• Age proof for entrepreneurs (birth certificate/school certificate)
• Caste certificate (if applicable)
• Disability certificate (if applicable)
• GPCB CTE (if applicable)
• Land/property ownership proof or registered rent/lease agreement
• Property tax receipt (for service activities)
• Board resolution (for partnerships, LLPs, Pvt. Ltd., etc.)
• Declaration of other investments in Gujarat
• Annexure showing gross fixed capital investment
• CA certificate showing investment value
• Highlighted bank statement showing fee payments
Frequently Asked Questions (FAQs)
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What is the “Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)”?
It’s a comprehensive scheme by the Gujarat government to support MSME growth through various financial incentives. -
What is the duration of the scheme?
The scheme is active from August 7, 2020, to August 6, 2025. -
What is the objective of the component “Assistance for Reimbursement of CGTMSE Fees”?
To reimburse the annual service fees charged under the CGTMSE scheme for collateral-free loans to MSMEs. -
Who is eligible to apply for this reimbursement?
MSMEs that have availed collateral-free term loans under CGTMSE. -
How much reimbursement can an entrepreneur receive?
Up to 100% of the annual service fees paid, for a maximum of 5 years. -
What is the service fee structure for CGTMSE loans?
• 1st Year: 1.8% + risk premium
• From 2nd Year: 0.85% or as revised by CGTMSE -
How long is the reimbursement assistance available?
For up to 5 consecutive years from the date of loan disbursement. -
Are service-based businesses eligible for this reimbursement?
No, service and trading activities are excluded from this scheme. -
Can an entrepreneur apply if they have taken a secured loan?
No, only collateral-free CGTMSE-backed loans are eligible.