CGTSI: Credit Guarantee Fund Trust for Small Industries

    1. Government of India and SIDBI set up a Credit Guarantee Fund Trust for Small Industries (CGTSI).

    2. The scheme is confined to guaranteeing of loans extended by all scheduled/commercial banks and selected regional rural banks.

    3. Existing as well as new SSI units including IT and Software industry, to which credit facility upto Rs.25 lakhs (term loan as well as working capital) has been provided by eligible institutions without any collateral security including 3rd party guarantee are eligible for this scheme.

    4. Any collateral free credit facility (both term loan as well as working capital) extended by eligible institutions, on or after 1st June, 2000 to new as well as existing manufacturing SSI units including Information Technology and software industry particularly in the tiny sector with a maximum credit cap of Rs.25 lakhs per borrowing unit will be extended guarantee cover with a maximum guarantee cap on 75% loan amount.

    5. The lender should cover the eligible credit facilities within 90 days from the date of sanction of credit facility

    6. Guarantee will commence from the date of payment of guarantee fee and shall run through the agreed tenure of the term credit in case of term loans/composite loans and a period of 5 years where working capital facilities alone are extended to borrowers, or such periods as may be specified by the CGTSI in this behalf.



Credit linked capital subsidy scheme for technology upgradation of SSIs:

  1. Leather and leather products including footwear and garments
  2. Food processing
  3. Information technology (hardware)
  4. Drugs and pharmaceuticals
  5. Electronic industry particularly relating to Design and measuring
  6. Glass and ceramic items including tiles
  7. Dyes and intermediates
  8. Toys
  9. Tyres
  10. Hand Tools
  11. Bicycle parts and
  12. Foundries- ferrous and cast iron


  1. Existing SSI units registered with the Commissionerate of Industries, which upgrade with the state of the art technology with or without expansion.

  2. New SSI units which are registered with Commissionerate of Industries, which set up their facilities only with the appropriate eligible and proven technology duly approved by the Technical Advisory Committee.

Duration: Scheme will be in operation from 1.10.2000 to 30.9.2005

For further information




Age 18-35 years. 10 yrs relaxation for SC/ STs, ex-servicemen, physically handicapped, women and persons in NE region
Educational Qualification VIIIth passed. Preference will be given to those trained in Govt. recognised institute for atleast 6 months
Family income Not to exceed Rs.40,000/- p.a.
Other criteria Should not be a defaulter to any Nationalised Bank, FI, Co-op Bank, etc

Should be a permanent resident of the area for at least 3 years

Project cost Not to exceed Rs. 1 lakh for business sector, and Rs.2 lakhs for others. In case of joint partnership, project upto Rs.10 lakhs covered. Assistance is limited to individual admissibility.
Subsidy and margin money Subsidy limited to 15% of project cost subject to max of Rs.7500/- per entrepreneur. Banks allowed to take margin money varying from 5% to 16.25% of project cost to make total subsidy and margin money equal to 20%
Collateral Guarantee No collateral guarantee for loan upto Rs.1 lakh, per entrepreneur, even in case of partnership



ISO-9000 Certification Reimbursement


The Govt of India has an Incentive Scheme of ISO-9000 Quality System to encourage technological upgradation and quality improvement in the Small Scale Sector.  The Scheme provides provides reimbursement of 75% of the amount spent for acquiring ISO-9000 Certification (or its equivalent) upto Rs.75,000/- to each unit. The Scheme introduced in 1994 has been extended upto the end of 10th Five Year Plan i.e.31st March, 2007.


The Scheme Contemplates norms of reimbursement as under:

a) Payments made to Certification Agency (excluding travel & hotel expenses & Surveillance charges = Full Amount  
b) Payments made towards (i) Consultancy (ii) Training and (iii) Calibration


= Upto Rs.30,000/-
(Rupees Thirty Thousand only)

The entitlement for reimbursement = 75% ((a) full amount + (b) upto Rs.30,000/-) upto Rs.75,000/-


Application Form




Market Development Assistance for SSI Exporters:


The office of DC (SSI), New Delhi has a scheme which offers funding for participation in International Fairs, study tours abroad, trade delegations, publicity, etc.  Direct assistance under MDA for small scale units is given for individual sales-cum-study tours, participation in fairs/exhibitions and publicity.  SIDBI operates a scheme of direct assistance for financing activities relating to marketing of SSI products.

Permissible funding limits:

  • 90% of cost of return ticket subject to an upper ceiling of Rs.60,000/-.

  • 25% of the cost of production of publicity material limited to Rs.15,000/- in a      financial year.

The application for assistance must reach O/o DC(SSI), New Delhi atleast one month in advance.


For further information and application



Bar Coding:


All the categories of SSI units who have adopted Bar-code on or after 1st January, 2003 are now eligible to get the financial assistance of Rs. 15,000/- (75% of the registration fee of Rs. 20,000/- paid to EAN-India). It is also further clarified that those units who have adopted bar-code before 01-01-2003 will continue to be reimbursed the old registration fee as was applicable to SSI/Tiny units earlier.

Revised Guidelines for financial assistance to Small Scale Industries under SSI-MDA Scheme for bar-coding registration (w.e.f. 1st January, 2003).



Application Form


Cluster Development Programme:


Keeping in view the broad-based participative Cluster Development Initiatives of the Ministry of SSI with a holistic approach, the UPTECH Scheme has now been renamed as "Small Industry Cluster Development Programme".  The Ministry has decided to start a large number of Cluster Development initiatives across the country under the UNIDO methodology for Cluster Development.  UNIDO Focal Point Cluster Development Programme, New Delhi is actively assisting the Ministry in respect of designing the structure and contents of the programme.


As many as 21 Clusters have been selected in July, 2003 for Cluster development with a holistic approach by the Office of the DC(SSI).  Earlier discussions were held with State Governments, local Industries Associations, Financial Institutions and other organizations involved in promotion of SSIs while selecting the clusters and the following considerations have been kept in view:-

  • Distinct technology and product

  • Status of basic infrastructure

  • Presence of capable supporting Institutions

  • Potential for Growth

  • Local leadership and support within the Clusters

  • Contribution to employment and exports etc.

Considerations of coverage of a wide-range of products as well as different regions of the country (especially the industrially or infrastructurally backwards regions) have been given adequate weightage.  It is now proposed to select atleast 20 more such Clusters in immediate future for development under the same Programme.


Officers of SIDO with suitable personality traits have been identified to act as Cluster Development Agents and they have been involved in the process right from the stage of selection of the Clusters.


The emphasis now in SIDO is on in-house capacity building by raising a committed cadre of officers well versed with the concept, methodology and practices of Cluster Development.  For this purpose, a Training-cum-Resource Cell for Cluster Development is being created in the premier training Institute of the Ministry, i.e. National Institute for Small Industry Extension Training (NISIET) at Hyderabad.  Besides running cluster development programmes on its own, the Ministry would also welcome proposals from capable partner Institutions like State Governments, EDIs and institutions engaged in development of SSI) for support in design, implementation and funding of such programmes.




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