What is the annual guarantee fee(AGF) of CGTMSE?
Understanding CGTMSE and Its Benefits for MSMEs
Hello everyone, let’s discuss the fee details for coverage of MSME loans from the government. The fee was recently changed and reduced by the government on March 18th, 2025, to help small and medium enterprises engage more in business.
What is the annual guarantee fee (AGF) of CGTMSE? The government recently reduced this fee on March 18th, 2025, to support small and medium enterprises in their business activities. This adjustment aims to encourage greater engagement of MSMEs in the business sector. The annual guarantee fee (AGF) of CGTMSE was recently reduced by the government on March 18th, 2025, to support small and medium enterprises in their business activities. This adjustment aims to encourage greater engagement of MSMEs in the business sector. MSMEs can benefit significantly from this reduced fee structure, making it more feasible for them to access financial assistance for their business growth. Additionally, this reduction in the AGF aligns with the government’s initiatives to boost the MSME sector and promote economic development in the country. As a result of this fee modification, MSMEs have a better opportunity to thrive and contribute to the overall economic progress.
Please find below the slab details of the annual guarantee fee.
0 – 10 lakh 0.37
Above 10 lakh -50 lakh 0.55
Above 50 lakh -1 crore 0.60
Above 1 crore -2 crore 0.85
Above 2 crore -5 crore 1.00
Above 5 crore -8 crore 1.10
8 crore- 10 crores – 1.20
This will be applicable for all new and extended loans from FY 25-26. All government schemes such as PMEGP, UYEGP, and other schemes can be covered under the program.
Additionally, businesses should be aware of the various options available to ensure they maximize their loan coverage.
Obtaining an Udyam certificate is mandatory for coverage. The fee needs to be paid upfront for the first year on a pro-rata basis and will then be renewed yearly. Small and medium business enterprises must make proper use of it. Please feel free to drop a comment or reach out to us if you need any assistance.
Please check this link to find the fees from the calculator https://cgtmse.info/cgtmse-fee-calculator/