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the mortgage provided under CGTMSE scheme is collateral free.

Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE) is another national effort that gives financing to MSMEs via finance institutions like banking institutions and NBFCs. Under this scheme time that is first and startup enterprises are majorly benefitted.

The equipment that is bought when starting the business is kept as collateral with the bank, thus enabling the lender to charge a relatively low rate of interest with slightly higher risk under this type of funding.

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