Surely a good news for startups who are facing tough time raising money – SBI 
has signed an agreement with credit guarantee fund trust for micro and small enterprises (CGTMSE) to offer collateral free credit upto Rs one crore for SMEs.
The fund is aimed at SMEs in all sectors (except agriculture and retail) and SBI is aiming to disburse nearly one lakh such loans by end-fiscal, with an average ticket size of Rs 3-5 lakh (source)
Also, CGTMSE has tied up with other leading public sector lenders such as Punjab National Bank, Canara Bank, Bank of India, Union Bank of India and United Bank of India to offer collateral-free loans to customers
If you had any experience securing loan from SBI/Banks, please share (and help other startups).
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Ashish,
How recent is this. Because if something hasn’t changed in the past two months, this is old news and nothing of this happens on the ground.
I have knocked the doors of at least four banks, SBI included, in connection with this scheme. They are supposed to offer the loan collateral-free but that decision is given to the banks and banks ask for collateral and persuade you to take a personal loan instead. They are very, very, very reluctant to take on risk and, since approval is at their discretion, they very often reject your application.
All in all, it’s a frustrating exercise because you know the government means well but the banks are loathe to take a risk.
Regards,
Leonard Fernandes
http://www.cinnamonteal.in
This sounds good. Although i dont think letting go of control is such a bad thing. A VC could still be a good option keeping in mind the insights they lend and the clout in terms of cross pollinating services, products and media. Or you could do what Deskaway did with MVP and let go of stake for team extension.
I don’t know why I am feeling skeptic about it. Normal VCs who are suppose to well versed in technology make so much of noise and tantrum before investing. How could a bank that also state owned would be able to analyze a technology start up. I really wish this news to be true but it is just too good.
I totally agree with Leonard. Unsecured loans for startups or SME from nationalized banks still remains a distant dream in India.
@Ashish – Can you provide more details on this one.
Suvin K Varkey
http://www.logicmanse.com
Dear All
Hi, I am Looking for Loan of 15 laks under Credit Guarantee Fund Trust Scheme. I have approached to some banks but they are not ready to give loan without any collatoral guarantee.
Kindly help me. Pawan Kumar Agrawal, 09350490798 / 09899703897 agarwal.pawan@rediffmail.com
We are 20 years old export company for spices and foodstuffs.
Due to current recession some overseas payment are held up for sometimes and now urgently require for 10 lakhs for new line of export of Fruits,Vegetablesm Pineapples & Roots to Gulf by Air & Sea.
Substantial export orders in hand. Also have a complex to convert to
resort or sports complex in central travancore-Kerala. Interested can contact also e-mail: omnicochin@hotmail.com
I agree with Leonard i really dont know how many of startups have recieved more then 10 lakhs without struggling. I have invested more then 50 lakhs and employed more then 40 people for the last one year but at the end of the day they are mor willing to lend for a house worth crores to nri/doctors/cash rich companies rather then startups. They will play absoultely safe which is very dissapointing.All my plans to scale to 200 plus are now on hold. Rich can become richer with the current trends adopted by banks
Dear all ,
At first when i learnt about the scheme of credit guarantee fund trust and the eligibility i was so happy that i would definitely be eligible , and ha the rules are so good , the guarantee by the fund ceases if
1. The banks ask for collateral security ,
2. If the banks ask for third party guarantee .
Sounds interesting and also funny , because the rules are no more rules in practical , I have approached quite a number of banks in this regard , and the result……. NOTHING , they can give loans only with collateral ,
Then what is the fun in creating a fund trusts of this kind which cannot govern its MLI’s (Member lending institutions) ? and does not solve the very intended purpose of forming the trust ?
Are these trusts playing a fool around educated entrepreneurs ?
Are the schemes only for people who are rich anyhow ?
OR , are these schemes just VIRTUAL ?
For now i feel it is stupidity to believe that there are schemes of such kind , please don’t be misguided as i was . One of my friend pulled my leg saying that why are you struggling so hard to raise the capital for your industry , there is a scheme of this kind which is very-much for people like you , BUT………………………………………………………….
After reading your ads. and attending workshop(after paying Rs.2000/-) on loan without collateral upto 1 crore rupees I personally visited many banks including SBI, Union Bank, SIDBI etc. but no bank is ready to provide loan without collateral. I am having a SSI unit and required only Rs.15 lac as a working capital but no bank is ready to assist financially. Though my machinery and stock valued above 10lac. Please advise me which bank’s branch is providing loan up to 1 crore without collateral security as per loan policy you advertise.
hay nitin , Glad to know that you are an active player in bringing our country a step ahead in building strong nation , But every thing has its own pain dear , ok let me know why are you looking at a loan for 1 crore when you need only 15 lakhs ?? , ok as per the latest update i learnt that the maximum loan under credit garuntee is 50 lakhs (0.5 crore) , But make sure you have the basic requirements , Have a good amount in the banks where you are looking for loan , must have your collatral still , atleast to tell the bankers that you have atleast something of your own , though they are not sopposed to ask under collatral free loans .
Rest keep trying and make a good impression to the bankers , keep them updated with all that they want to know about your project ,
all the best ,
suresh.c.n
want to start a technical college need to identify some funds arrangements methods can anybody tell us how to arrange at least 1 crore rs ? we don’t have any gauranters ?
Hello Ms. Madhuri Dewangan,
You can try to msme (Micro Small Medium Enterprises),
They give you One Crore colletarl free loan.
After reading through all your messages I am really confuse as where to go in reality,I think one should write to some places like human rights,Bank’s vigilance cell,Medias,Not ministers,Not-police Stn ,Banker’s Association,International forum,NGO’s ,Anti corruption cell,and The department that has developed such a Trust(CGFTS)……Otherwise I am sure that Un-employment will lead to poverty /terrorism /exploiter /epidemic-diseases /non-educated future generation will grow in every step & will permanently root in our country….OR..just C….helplessly……
Hi
Is ther any VC who is interested to give funds of nearly 15-20 lacs to start the Primary school as initial startup.
REgards
pawan kumar agarwal
09899703897
agarwal.pawan@rediffmail.com
You can send more details to ashish at pluGGd.in
I have come across the colleral free loan ad. But after reading the comments above, iam vary.
I run a 3 year old High End security company. We provide all kinds of high quality Security services. Our client list includes corporates and Hotels.
Since we are manpower dependant and our major expense is salaries (60%), We are looking to have a surplus fund to pay our salaries on time.
We are looking for a collateral free loan of around 25/30lac.
We are registered as a SME.
Seek guidance.
M Williams
CMD
SHADOWZ PROTECTION PVT. LTD.
Dear Williams,
Let me know your Turnover, EBIT, Liabilities and PAT.
Hope, you declare your returns.
I will try to arrange CC Limit free from Colleteral. I am in Gurgaon, where are you.
Dear Sushant. Iam based in Mumbai. Turnover around 2.40cr for this year. My email id: info@shadowzprotection.com
Rest my Auditor will explain.
reply.
Thx.
Williams
They are offering upto 50 lacs, that also with 3 % processing charege in first year and 1.5% every year, something no Banks mention on their website.
Instead go & kick banker ass he give some loan
Hi,
I plan to open a primary school in Modinagar,Ghaziabad or around Lucknow which can later be blossomed into a chain of schools. I need angel funding or an investing partner who can invest a minimum of Rs.20 lakhs. I have almost 9 years of administrative experience and of managing a school. I have contacts with various Heads of Institutions who can be on advisory panel.
Manish Lal
+919910083383
i have a well established medical instrument company in bangalore. i need a financial partner for expansion. details will be given to a genuine investor. brokers excuse.
rgerads
sudarsh
hi
i need the small business loan up to 6 lakhs i can arrange the guarrantor as well.
Dear Sir,
I had been trying since last 6 months to get a colateral free loan. But as above mentioned its the same response bank gives.some of the banks don’t even know about CGTSI.My project is approved by DIC under PMEGP scheme.I have a project for UPS and Inverter Manufacturing cum assembling worth 23 lacs.KIndly do let m,e know what to do.Also Allahabad bank kept the project for 2 months , gave me the loan application form etc.,took my interview.And finally one fine day rejected the project without telling me any reason.After repeated requests they told me that there is less employer in this project as per the project.I would like what it means that a project is based on the number of employer.plz reply
i am satisfied with the cgtmse scheme and i got 25 lakhs loan
fopr set up a ssi unit
D/sir i am diploma in electronics enginiering . i want to stablish a manufacturing unit of computer smps,ups. how i can get colleteral free loan. project cost is Rs.40lacks
i m running a trading business since 1996. my firm turnover is 70 to 80 lakh per anum, now i want to start a manufacturing business.for that i need sme loan. but mostly banks refused to give loan without any collatoral guarantee.
what should i do to get this.
9532835165
dear sir
iwish to start our own business related to surgical eqipment.please tell ,what is the procedure for taking the colatteral loan for business.