How to Get Collateral Free Loan from a Bank?

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Wed, 05/23/2012 - 14:17
#1
Forum Master
How to Get Collateral Free Loan from a Bank?

Government launched the Credit Guarantee Fund Scheme for Small Industries on 30th August, 2000 with a view to alleviating the problem of collateral security and impediment to flow of credit to Micro and Small Scale Industries (SSI) sector.

Under the CGTMSE Scheme the trust extends guarantee upto Rs.100.00 lacs per borrower for credit facilities sanctioned without collateral or third party guarantee. The loans sanctioned under Govt. Sponsored schemes  are also covered under the scheme.

The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSME unit, which availed collateral free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 75 / 80/ 85 per cent of the credit facility.

Frequently Asked Questions ( FAQs) on Collateral Free Loans

List of Banks offering Collateral Free Loans under the scheme

Bank Schemes offering Collateral Free Loans under CGTMSE Scheme

 

 

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Thu, 09/13/2012 - 15:57
tarerohit
I am willing to start a monthly magazine. I wish to set up publication and gather all information on a monthly basis and get the magazine printed through outsourcing (say around 10000 copies on a job work basis for a start). I have plans to extensively market the brand and bring the magazine into circulation to its readers. I wish to know if I can get any funding or Guarantee from the CGTMSE. Can anyone pls guide me through. Thanks in advance. Any yes, Thanks to SIDBI for a wonderful initiative.
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Thu, 09/13/2012 - 16:03
tarerohit
I am willing to start a monthly magazine. I wish to set up publication and gather all information on a monthly basis and get the magazine printed through outsourcing (say around 10000 copies on a job work basis for a start). I have plans to extensively market the brand and bring the magazine into circulation to its readers. I wish to know if I can get any funding or Guarantee from the CGTMSE. Can anyone pls guide me through. Thanks in advance. Any yes, Thanks to SIDBI for a wonderful initiative.
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Sat, 09/15/2012 - 12:31
manish_rathod
i want to start up a unit for tender coconut water processing plant and sell it to retail market as well as export it to US and other european market. i have a very good market plan which help me to create my brand and i capable of selling product in market . can anybody help me to know how can i avail the credit gurantee scheme from bank.
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Fri, 09/28/2012 - 15:23
(Reply to #4)
Forum Master 1
You may appraoch any of the banks appearing in the following link: http://www.cgtsi.org.in/List_Of_MLIs.aspx
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Sat, 09/22/2012 - 15:44
ashishagarwal77
I am a salaried person, I have a commercial plot alloted by development authority now I want to construct the godown along with the office how can I get a loan for this construction against my salary I have talked to some of the bank but either they do not understand what it is or they are not willing to do it Thanks and Regards
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Fri, 09/28/2012 - 15:36
(Reply to #6)
Forum Master 1
You may get mortgage loan from Dena Bank and their scheme can be viewed as per following link: http://www.denabank.com/viewsection.jsp?lang=0&id=0,4,26,141
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Sun, 01/27/2013 - 13:50
Prasad maddula
I am running a small business since last 2 years. Now i would like to expand my business and looking for a 1 cr. industrial loan for Offset Printing press for Packaging Cartons. I am an post graduate in Packaging Technology having 12 years industrial experience. And I have a very good opportunities in Sales Part. Kindly suggest for way forward.
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Tue, 01/29/2013 - 14:35
unicelengg
respected sir, i have availed term loan of 53 lakhs and cash credit facility of 30 lakhs from sate bank of india for my pipe manufacturing project and total loan of 83 lakhs is covered under CGTMSE scheme.my query is ,no i need letter of credit of Rs50 lakh for raw material purchase as our sales gone up.So can i avail the LC within the scope of CGTMSE scheme.if not then would i have to keep my loan amount within the limit of 100 lakhs for coming years in which CGTMSE has extended its cover? thanks and regards Amol Ambulkar
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Thu, 01/31/2013 - 08:18
karunakaran
I have planed to start distribution of solar energy Products fro Residential and Agriculture Use. I want Start up Capital of Rs 6 to 8 Lac. Can banks provide me loan without collateral. Kindly Advice. Thanks & Regards, Karunakaran
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Thu, 04/04/2013 - 11:35
abhinandan.kabra
i have a plant of Rubber crushing from last 3 years now i want to get extend my project to Crumb rubber and that project cost is about 10 Lac Rs. i have learned about CGTMSE scheme but in my city no any finance institute wants to do that loan or may be they are not aware about the scheme kindly suggest what to do for my loan as i have already visited approx 15 Banks. Thanks
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Tue, 04/09/2013 - 11:45
moderator 2
We have already listed schemes from various Banks who are offering loans under CGTMSE scheme. Please see the following link: http://smallb.in/bank-schemes?field_bank_scheme2_tid_2=234&field_financial_institution2_tid=All This will provide you names of specific Banks, Scheme Details and the Loan Forms. Please do not forget that Banks provide loan only when you have a proper business plan and you are able to convince the Bank that your business plan is workable and you have the necessary skills, expertise and resources to execute the plan. If your business plan meets all these criteria, you should not have much difficulty in getting your loan sanctioned.
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Wed, 04/10/2013 - 10:49
sreekala
i would like to start a new e commerce business . Which fetched sales leads and will get more income from usa, india, and top countries in the world and one more important thing in my business is no one established this business in this world . That i googled for it but no one does but i have that idea to open it up have no capital . Please help me out to establish this business.
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Wed, 04/10/2013 - 10:58
(Reply to #13)
moderator 2
Our Step by Step Guide for Starting a New Business has been specifically designed for needs similar to yours. Please follow the steps: http://smallb.in/step-step-guide-starting-business
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Fri, 04/26/2013 - 13:07
TEJAS
Hi, There are many discussion of Loan for a manufacturing setup. However banks generally do not give collateral free loan to a start-up having a trading business even though it is not retail trade but high end medical instruments. Why do banks differentiate between a mgf and trade entrepreneur. In this situation, what are the options for collateral free loan for new setup ?? Please advise. None of the articles clarify this. Also what specific businesses are classified under priority segment. Thanks .
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Tue, 04/30/2013 - 11:49
(Reply to #15)
moderator 1
Hello Tejas, Banks act on Regulations by the RBI and also internal processes without interference from the CGTMSE. However in this case we would appreciate more information from your behalf regarding which bank schemes you applied to?The specifics of your business,and more on what problems you are facing with the process.We looking forward to hearing from you.Thank you
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Fri, 05/10/2013 - 14:46
(Reply to #16)
TEJAS
Hello Moderator, I have already sent a detailed response by email. However I have not received any response to that. Kindly reply with details. Tejas
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Fri, 05/03/2013 - 13:44
shivram shivhare
I want to startup a new business . But I Have no money for start. anybody can help me & get partner life time.
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Mon, 05/06/2013 - 04:45
Tunoy Mukherjee
Hi, I am associated with International trade in Switzerland, and have noticed few SMEs are direly interested to set up their office in India, My question to the moderator is, are there funding possibilities for foreign SMEs(financing SMEs ) in India, which sectors in particular, I am Delhi origin so, what possible sectors be beneficial in starting business based out of Delhi, I have tried contacting Chamber of Commerce however the information provided is either irrelevant or incomplete, your inputs will be highly appreciated, Thanks
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Fri, 05/17/2013 - 10:14
Delvia
Anybody can give me a detailed Project Report for Catering Business Services
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Tue, 07/02/2013 - 20:18
mahesh.buzz
Is anybody having financial projections and Profitability projections (excel sheet) with data therein, as per format given in this website for reference, please share...........
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Tue, 07/09/2013 - 11:08
bhupendersingh
I want to establish a flyash bricks plant in Jaipur, Rajasthan. I have been selected through a scheme of rajasthan financial corporation for funding entrepreneurs. Total investment is 51 lacs. Rate of return in 86% and breakeven point is 33%. 90% of the amount is being financed by RFC under the scheme alongwith the land requirement for the plant. Could you please suggest a way to raise my 10% share of the project cost and additional costs for facilitation purposes, amounting to a total of 10 lacs? Is there a scheme where I can obtain a credit guarantee for my share of investment, as and when my loan amount is to be sanctioned by RFC.
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Wed, 07/10/2013 - 15:27
(Reply to #22)
moderator 2
Please see this link for for FAQs on CGTMSE scheme. http://www.cgtsi.org.in/FAQs.aspx?artid=116
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Sun, 07/14/2013 - 13:26
Nagesh.khatri
I want open a garments store in beands.I have experience in retail sector last 8 years.so plz help me hw I start & what kind of conditions .khatri35@gmail.com
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Sun, 07/14/2013 - 13:32
Nagesh.khatri
I want open a garments store in brands.I have 7years experience in garments sectors. Plz tell me how to get the loan. plz send full details
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Fri, 07/19/2013 - 15:18
(Reply to #25)
moderator 2
Please see this section for complete details on loans from Banks
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Sun, 07/28/2013 - 18:07
neerajnegi
i want to start a jeans and t-shirt manufactring factory tocreate new brand i am currently working in an mnc, i dont have enough finance and dont have industry experiance . how can i gen colletralfree loan plz help i am currently doing reaserch formy business idea
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Thu, 08/08/2013 - 17:43
kumar
Sir, i am a commerce graduate from Delhi University. Presently i am doing my real estate consultancy business since, 2011. I am planning to open a Restaurant in delhi and in talks with Two to three reputed brands for franchisee. The total cost of project would be around Rs.8,00,000/- out of this i need a financial assistance of Rs.5,00,000/- balance would be introduced as capital. Please advise me that can i get financial assistance for opening restaurant with franchisee mode?
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Thu, 09/05/2013 - 13:15
mahesh ghorpade
Sir , I have diploma n mechanical Engg. I have 9 years experienace in mechnical ( foundry) field . Now, I am starting new small scale Industry on my agricultural land. This Industry is mechanical (foundry) type Industry. And for this perpose I have required loan . Please give positive reply.
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Fri, 09/06/2013 - 09:58
(Reply to #29)
moderator 4
Please see the below section on funding: http://smallb.in/startup/fund-business
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Mon, 09/16/2013 - 02:00
cheeku
We wish to start a dairy farm with our own animals giving us raw milk and then that milk will be processed, packaged, branded and be sold. Are we covered along with animals in food processing section?
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Wed, 09/18/2013 - 11:45
(Reply to #32)
moderator 4
Please see this Link for details: http://smallb.in/node/2432?tid=All&field_industry_tid=36
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Thu, 09/19/2013 - 22:26
K G Prasanna
Dear Sir, I have a plan to start a international freight business which is basically service oriented. I have around 20 years of experience with sound knowledge of market dynamics. Look forward for a funding of 25 lacs. Can you suggest a non-collateral loan scheme ? Thanks in advance for the soonest response.
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Fri, 09/20/2013 - 11:01
(Reply to #34)
moderator 4
There are a number of Banks which provide collateral free Loans under CGTMSE scheme. Please see FAQs on collateral free loans for further details: http://smallb.in/faqs-frequently-asked-questions?field_faqs_tags_tid=456 You will need a well chalked out business plan for the purpose. You may start by filling up the loan application form for one of the banks. Please remember that Banks are eager to give loans if the Project is sound, Financials look good and the Promoters are capable of executing the plan. Our Funding section provides all the necessary details.
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Sat, 09/21/2013 - 14:07
Bhavani
I am running a small business since last 2 years. Now i would like to expand my business and looking for a 1 crore industrial loan for Photos frames am an post graduate in Packaging Technology having 6 years industrial experience. And I have a very good opportunities in Sales part. Kindly suggest for way forward.
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Mon, 09/23/2013 - 10:04
(Reply to #36)
moderator 4
A query similar to the one you have asked has already been replied to. Kindly see all our replies in this topic. Best Wishes
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Mon, 09/23/2013 - 10:23
Bhavani
Under the CGTMSE Scheme the trust extends guarantee upto Rs.100.00 lacs per borrower for credit facilities sanctioned without collateral or third party guarantee. The loans sanctioned under Govt. Sponsored schemes are also covered under the scheme.
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Mon, 09/23/2013 - 10:25
Bhavani
I am willing to start a monthly magazine. I wish to set up publication and gather all information on a monthly basis and get the magazine printed through outsourcing (say around 10000 copies on a job work basis for a start). I have plans to extensively market the brand and bring the magazine into circulation to its readers. I wish to know if I can get any funding or Guarantee from the CGTMSE. Can anyone please guide me through. Thanks in advance. Thanks to SIDBI for a wonderful initiative.
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Mon, 09/23/2013 - 18:04
Bhavani
I want to start a jeans and t-shirt manufactring factory to create new brand i am currently working in an mnc, I dont have enough finance and dont have industry experience . How can I gen colletral free loan. Please help I am currently doing reaserch part of business idea
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Tue, 09/24/2013 - 10:19
(Reply to #40)
moderator 4
A query similar to the one you have asked has already been replied to. Kindly see all our replies in this topic. Best Wishes
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Sun, 10/06/2013 - 00:49
jayanta.goswami
Hi, I am running an pan India IT services business for last 14 years. My turnover is Rs.17 crores. I am availing the CGTSME facility of 100 Lakhs for last four years but my business being very working capital intensive. I am looking for another 2 crore loan but I cannot provide collateral. Is there any way ?
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Mon, 10/07/2013 - 09:51
(Reply to #42)
moderator 4
A query similar to the one you have asked has already been replied to. Kindly see all our replies in this topic. Best Wishes
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Tue, 10/08/2013 - 21:37
Rajeev Gupta
Dear Sir, We are a proprietorship concern dealing in HVAC Solutions. This business was started in the year 1968. The business was run by my father (Proprietor) and my brother. The business was good till there was growth in the year 2004. I had to leave my job and joined my father's business in the year 2004. Though the business has grown since then, but due to lack of funds we are not able to do the business as per the potential. At present we have CC of 23 lacs and 4.3 lacs which has been utilized to the full. We have also taken a loan from a finance co. to the tune of 7.0 lacs which is also been utilized. Our business turnover of last financial year was 1.2 Crore. We are looking for working capital of Rs. 60 lacs to takeover the above loans i.e, Rs. 35.0 lacs to close the above loan and Rs. 25.0 lacs to put in to our business. (Collateral can be provided). Please guide
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Tue, 10/15/2013 - 10:30
(Reply to #44)
moderator 4
Please see the below Link for details regarding Term & Working Capital Schemes of various banks: (http://smallb.in/%20/fund-your-business/financing-schemes-various-banks?field_bank_scheme2_tid_2=250&field_financial_institution2_tid=All) You can contact banks directly for further details. Banks will provide you loan if you meet the following criteria: 1. You have a well chalked out business plan and you are able to satisfy the Bank that your plan has reasonable chances of success. 2. You possess the necessary qualifications, skills and resources to execute the plan. 3. You are fully committed to making the venture succeed. Best wishes
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