What is the CGTMSE guarantee fee?

The CGTMSE guarantee fee is the amount charged by the Credit Guarantee Fund Trust for providing guarantee cover to lenders. It is calculated as a percentage of the loan amount. The fee ensures the trust has funds to pay claims when borrowers default.

How is the CGTMSE fee calculated?

The CGTMSE fee is calculated by multiplying the loan amount by the applicable rate. The rate depends on the loan slab. For example, a ₹40 lakh loan at 0.55% gives an annual fee of ₹22,000. The first-year fee is pro-rated from the guarantee date to 31 March. Discounts may apply for certain borrower categories.

Is there a CGTMSE fee calculator?

Yes, a CGTMSE fee calculator is available on the official CGTMSE website and many bank websites. You enter the loan amount and other details. The tool gives you an instant estimate of the annual guarantee fee. It is free to use and helps you plan your loan budget.

Who pays the CGTMSE guarantee fee?

The Member Lending Institution (MLI) pays the CGTMSE guarantee fee to the trust. The MLI usually recovers this amount from the borrower. The borrower bears the cost of the CGTMSE Premium, which is included in the overall loan cost.

Can the CGTMSE fee be refunded?

The CGTMSE fee is generally non-refundable. Once the fee is paid and the guarantee is issued, the amount is not returned. This applies regardless of whether the loan is approved or disbursed. Borrowers should consider this when planning their loan application.

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CGTMSE Guarantee Fee Calculator: How to Calculate CGTMSE Charges

Wondering how CGTMSE guarantee charges are calculated? Learn the fee calculation formula, applicable rates, guarantee cover, and factors affecting CGTMSE charges for MSME loans.

Anjali Singh

Assistant Manager

Published Date:Jul 6, 2026

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Anjali Singh

Assistant Manager

Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.

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