Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Reimbursement of CGTMSE Fees
The “Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)” launched by the Industries and Mines Department aims to position Gujarat as a global business hub, promoting sustainable manufacturing, MSME growth, and export competitiveness.
About This Scheme
The scheme “Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)” is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state’s dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from August 7th, 2020 to August 6th, 2025, this initiative supports entrepreneurs and strengthens MSMEs, making them globally competitive.
The component “Assistance for Reimbursement of CGTMSE Fees” provides financial assistance for the implementation of Information and Communication Technology (ICT) infrastructure. The support covers equipment required for communication, networking, and cloud computing.
Benefits
Collateral-Free Loans:
Government of India has instructed financial institutions to sanction collateral-free loans up to ₹2,00,00,000/-.
Support for MSEs:
Assistance is provided to Micro and Small Enterprises (MSEs) under this scheme.
Service fees charged by banks/financial institutions are eligible for reimbursement.
Annual Service Fees:
1st Year: 1.8% + Risk Premium.
2nd Year Onwards: 0.85% or as amended by CGTMSE/RBI.
Reimbursement Assistance:
100% reimbursement of the annual service fees paid by entrepreneurs for up to 5 years.
Eligibility Criteria
The firm must be a Micro/Small/Medium enterprise.
The enterprise must have availed of a collateral-free term loan under CGTMSE.
The application must be submitted within within one year from the date of first disbursement of Term loan, or on or before the date of commencement of commercial production, whichever is later.
Exclusions
Enterprises engaged in service or trading activities are not eligible.
Enterprises that have not availed of CGTMSE-backed loans are not eligible.
Application Process
Apply Online
Registration Process:
Step-1: Visit the
Investor Facilitation Portal (IFP)
portal. Click on “New Investor Registration” to access the registration form.
Step-2: Fill in the Registration Form. Click on “Submit”.
Step-3: Verify the E-mail ID using the link sent on your registered E-mail ID.
Step-4: After verification, you will be registered successfully.
Post-Registration Process:
Step-1: Visit the
Investor Facilitation Portal (IFP)
portal. Click on “Login”.
Step-2: Enter the email address and password you used during registration.
Step-3: Click the “Login” button to access your account.
Step-4: Now fill in the required details and mandatory documents about your business to complete the application process.
Helpdesk:
Contact Here.
Micro, Small and Medium Enterprise
An Enterprise which satisfies the conditions of Micro, Small and Medium Enterprises as per the definition under the MSME Development Act, 2006 and subsequently amended from time to time by Government of India and has obtained acknowledgement of “Udyog Aadhaar Memorandum / Udyam Registration.
New Enterprise
New Enterprise means MSME, which has filled Udyog Aadhar / Udyam Registration as prescribed by the Government of India and commences commercial production during the operative period of the scheme.
Existing Enterprise
An Existing Enterprise means MSME which has commenced commercial production before the date of announcement of the scheme.
Expansion
Expansion means where an existing/New Enterprise increases its investment in gross fixed capital by at least 50% (out of which at least 60% of investment is made in plant and machinery for which expansion is carried out) of its existing gross fixed capital investment on the date of initiating expansion and compared with the date of commencing production during the operative period of the scheme.
Gross Fixed Capital Investment (GFCI)
Gross Fixed Capital Investment means the investment made in building, plant and machinery, utilities, tools and equipment, and other assets (excluding Land) to manufacture the end product.
Forward integration, Backward Integration and Diversification
Forward Integration: An Investment made in GFCI for the product which is raw material of the enterprise will be termed as backward integration.
Backward Integration: An Investment made in GECI for the further value addition in the end product of the enterprise will be termed as forward integration.
Diversification: An investment made in GFCI for the product other than the end product of the enterprise will be termed as diversification.
Term Loan
Term loan means loan sanctioned by the financial institution / Bank (Except NBFC) for the acquisition of GFCI of the enterprise. However, only the amount actually disbursed against the sanctioned will be considered for the incentives under the scheme.
Pipeline Enterprises
The Enterprises which have obtained first disbursement of term loan as effective step and could not start commercial production on or before 07/08/2020, shall be considered eligible as pipeline enterprise for incentive under previous scheme. Such enterprise should commence commercial production on or before 31/03/2021.However the enterprise which has obtained first disbursement on or before 07/08/2020 may opt for new scheme. Term Loan disbursement made during the policy period will be eligible for the enterprise which has opted for this scheme.
Official Source: View on myScheme.gov.in
Eligibility Criteria
The firm must be a Micro/Small/Medium enterprise.
The enterprise must have availed of a collateral-free term loan under CGTMSE.
The application must be submitted within within one year from the date of first disbursement of Term loan, or on or before the date of commencement of commercial production, whichever is later.
Benefits
Collateral-Free Loans:
Government of India has instructed financial institutions to sanction collateral-free loans up to ₹2,00,00,000/-.
Support for MSEs:
Assistance is provided to Micro and Small Enterprises (MSEs) under this scheme.
Service fees charged by banks/financial institutions are eligible for reimbursement.
Annual Service Fees:
1st Year: 1.8% + Risk Premium.
2nd Year Onwards: 0.85% or as amended by CGTMSE/RBI.
Reimbursement Assistance:
100% reimbursement of the annual service fees paid by entrepreneurs for up to 5 years.
Application Process
Apply OnlineRegistration Process:
Step-1: Visit the Investor Facilitation Portal (IFP)
portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your registered E-mail ID.
Step-4: After verification, you will be registered successfully.
Post-Registration Process:
Step-1: Visit the Investor Facilitation Portal (IFP)
portal. Click on "Login".
Step-2: Enter the email address and password you used during registration.
Step-3: Click the "Login" button to access your account.
Step-4: Now fill in the required details and mandatory documents about your business to complete the application process.
Helpdesk: Contact Here.
References & Official Links
Scheme Details
| Full Name | Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Reimbursement of CGTMSE Fees |
| Short Title | SAMSMECGT |
| Level | State |
| Scheme For | Infra |
| Categories | Business & Entrepreneurship |
| States | Gujarat |
| Close Date | 2025-08-06 |
| Gender | All |
| Age Range | 50 — 5 years |
| Area | Both |
| Source | myScheme.gov.in ↗ |