Letter to the bank, request for sanction without collateral under RBI directions and CGTMSE cover
CGTMSE guarantees the lender , not the borrower. The client does not apply to it and receives no money from it. What CGTMSE does is give the bank a reason to lend without collateral, for a fee that the bank almost always passes on. The ceiling has been Rs 10 crore since 01.04.2025 . Clients go wrong in two ways. Some believe a “CGTMSE loan” is a scheme they can demand. Others pledge property for the same facility, which makes the covered portion ineligible.
- 1 page
- 24
- Word and PDF
- 16 September 2026
What it covers
- 1Letter to the bank, request for sanction without collateral under RBI directions and CGTMSE coverRBI Lending to MSME Sector (Amendment) Directions 2026 · CGTMSE CGS-I
Read the opening
The first part of the format, as it downloads. Blanks are highlighted.
[Letterhead of the enterprise]
Date: [Date of the letter]
To
The Branch Manager
[Bank name], [Branch]
[Branch address]
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