Punjab CGTMSE Fee Reimbursement
Department of Industries & Commerce, Government of Punjab · Central government
Punjab reimburses micro and small enterprises the full CGTMSE guarantee fee, capped at INR 2 lakh yearly for five years.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹2,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
Under Clause 12.8 A(5) of the Industrial and Business Development Policy 2022 of Punjab, micro and small enterprises are reimbursed the entire guarantee fee levied on them under the central Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. The reimbursement is subject to a ceiling of INR 2 lakh annually and remains available for five years, counted from the date of commercial production.
The CGTMSE scheme permits a small unit to raise a loan without furnishing collateral, charging an annual fee for that facility. By covering this fee, the clause brings down the effective cost of collateral-free credit.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Punjab
- Micro or small enterprise located in Punjab - Credit facility covered by the central CGTMSE scheme - Guarantee fee paid by the applicant - Claim may be filed within 5 years from the date of commercial production
How to apply
1. Obtain a credit facility backed by a CGTMSE guarantee from a member lending institution. 2. File the application under the Industrial and Business Development Policy 2022 through the Invest Punjab Business First portal. 3. Provide the bank's evidence of the guarantee fee debited for each claim year, together with the date of commercial production.
Frequently asked questions
What proportion of the fee is refunded?
The guarantee fee is covered in full, up to a ceiling of INR 2 lakh each year.
For how long can I claim?
The subsidy remains available for five years starting from the date commercial production begins.
Are medium enterprises covered?
The clause applies to micro and small enterprises.
Sectors
- Punjab
- Msme
- Cgtmse
- Guarantee Fee
- Collateral Free Loan
- Industrial Policy 2022
Details last verified on 18 September 2026. Source: the issuer's published information.