New Delhi, March 25 -- In a significant move to support the growth and sustainability of Micro and Small Enterprises (MSEs), the Government of India has announced enhancements to the Credit Guarantee Scheme (CGS-I).

Effective from April 1, 2025, the credit guarantee coverage limit has been increased from Rs 5 crore to Rs 10 crore. Additionally, the Annual Guarantee Fee (AGF) structure has been rationalised to reduce the financial burden on MSMEs.

As per Circular No. 250/2024-25 issued by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), the credit guarantee ceiling for banks has been doubled from Rs 5 crore to Rs 10 crore.

This decision aligns with the government's commitment to enhancing credit accessibility an...