CGTMSE Fee Calculator — Annual Guarantee Fee (AGF) 2025-26
Calculate the CGTMSE Annual Guarantee Fee (AGF) for any MSME credit facility covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises. Enter the outstanding loan amount, select your borrower category and your bank’s MLI risk rating, and the calculator shows you the exact fee payable — first year pro-rated to 31 March or full annual fee for renewals.
- Circular: 251/2024-25 (dated 18 March 2025) — latest revised fee structure
- Calculated on: Outstanding loan amount (not sanctioned amount) — for facilities post 1 April 2018
- Base rates: 0.37% p.a. (up to ₹10L) to 1.20% p.a. (₹8Cr–₹10Cr)
- Max credit limit: ₹10 crore under CGS-I (extended scheme)
- Category discounts: Women entrepreneurs −10% | SC/ST+Aspirational+ZED −30% | Aspirational+ZED −20%
- MLI adjustment: −10% discount to +70% risk premium based on bank’s CGTMSE rating
- First year: Pro-rated from guarantee date to 31 March
| Outstanding amount slab | — |
| Base rate (standard) | — |
| Category concession | — |
| MLI adjustment | — |
| Effective AGF Rate | — |
| Outstanding amount | — |
| Annual AGF | — |
| Days (disbursement to 31 March) | — |
| First Year AGF | — |
| Coverage % | — |
| Max guaranteed amount | — |
Formula: AGF = Outstanding × Effective Rate% · Base Rate × (1 − Category Discount%) × (1 + MLI Adj%) · First Year pro-rated to 31 March · Source: CGTMSE Circular 251/2024-25
| Outstanding Amount | Standard Rate | With −10% Discount | With +15% | With +30% | With +50% | With +70% |
|---|---|---|---|---|---|---|
| Up to ₹10 lakh | 0.37% | 0.3330% | 0.4255% | 0.4810% | 0.5550% | 0.6290% |
| ₹10L – ₹50L | 0.55% | 0.4950% | 0.6325% | 0.7150% | 0.8250% | 0.9350% |
| ₹50L – ₹1 Cr | 0.60% | 0.5400% | 0.6900% | 0.7800% | 0.9000% | 1.0200% |
| ₹1 Cr – ₹2 Cr | 0.85% | 0.7650% | 0.9775% | 1.1050% | 1.2750% | 1.4450% |
| ₹2 Cr – ₹5 Cr | 1.00% | 0.9000% | 1.1500% | 1.3000% | 1.5000% | 1.7000% |
| ₹5 Cr – ₹8 Cr | 1.10% | 0.9900% | 1.2650% | 1.4300% | 1.6500% | 1.8700% |
| ₹8 Cr – ₹10 Cr | 1.20% | 1.0800% | 1.3800% | 1.5600% | 1.8000% | 2.0400% |
Category concessions (Women −10%, SC/ST+Aspirational+ZED −30%, Aspirational+ZED −20%) apply to the base rate before the MLI risk adjustment.
How CGTMSE Annual Guarantee Fee Is Calculated
The CGTMSE Annual Guarantee Fee (AGF) follows a three-step calculation under Circular 251/2024-25:
CGTMSE Fee Rate Slabs — Circular 251/2024-25
The following base rates apply to all CGS-I (Bank) covered loans under the revised CGTMSE circular effective March 2025. The fee is charged on the outstanding balance of the credit facility.
| Outstanding Amount | Standard Rate | Women (−10%) | SC/ST+Asp+ZED (−30%) | Asp+ZED (−20%) |
|---|---|---|---|---|
| Up to ₹10 lakh | 0.37% | 0.333% | 0.259% | 0.296% |
| ₹10L – ₹50L | 0.55% | 0.495% | 0.385% | 0.440% |
| ₹50L – ₹1 Crore | 0.60% | 0.540% | 0.420% | 0.480% |
| ₹1 Cr – ₹2 Crore | 0.85% | 0.765% | 0.595% | 0.680% |
| ₹2 Cr – ₹5 Crore | 1.00% | 0.900% | 0.700% | 0.800% |
| ₹5 Cr – ₹8 Crore | 1.10% | 0.990% | 0.770% | 0.880% |
| ₹8 Cr – ₹10 Crore | 1.20% | 1.080% | 0.840% | 0.960% |
Rates above are standard (MLI 0% adjustment). Your bank’s actual rate will vary based on its CGTMSE risk rating. Source: CGTMSE Circular 251/2024-25, dated 18 March 2025.
CGTMSE Guarantee Coverage — Indicative Norms
| Credit Limit | General / Micro | Women / SC-ST Category |
|---|---|---|
| Up to ₹5 lakh | 85% | 85% |
| ₹5L – ₹50L | 75% | 85% |
| ₹50L – ₹2 Crore | 75% | 75% |
| ₹2 Cr – ₹10 Crore | 50% | 50% |
Frequently Asked Questions — CGTMSE Fee Calculator
What is CGTMSE Annual Guarantee Fee (AGF)?
The CGTMSE Annual Guarantee Fee (AGF) is the fee that a Member Lending Institution (bank/NBFC) pays to CGTMSE every year for keeping a credit facility under the guarantee cover. The fee is charged on the outstanding loan balance as of the fee due date. It is typically recovered from the borrower by the lending bank. The AGF ensures that CGTMSE’s guarantee remains active — if the bank fails to pay the AGF, the guarantee cover may lapse and any subsequent NPA claim would not be honoured.
Is the CGTMSE fee charged on the sanctioned amount or outstanding amount?
For credit facilities sanctioned on or after 1 April 2018, the AGF is charged on the outstanding loan amount at the date of fee computation — not on the original sanctioned (credit limit) amount. This means the fee reduces each year as the borrower repays the loan, unlike older facilities where the fee was on the original sanctioned amount. For facilities sanctioned before April 2018, the older norm of charging on the sanctioned amount may apply depending on the guarantee registration date.
What is the maximum credit facility eligible for CGTMSE coverage?
Under CGS-I (Credit Guarantee Scheme for Banks), the maximum credit facility eligible is ₹5 crore for most cases, extended to ₹10 crore under certain conditions including hybrid security arrangements. Under CGS-II (for NBFCs), the limit is ₹2 crore. For Retail Trade, the limit under CGS-I is ₹1 crore. The calculator supports the full ₹10 crore ceiling.
What does the MLI risk rating mean in the CGTMSE fee calculation?
CGTMSE assigns a risk rating to each Member Lending Institution (bank) based on the bank’s historical claim ratio under the scheme — that is, how many NPAs and claims have been lodged compared to the total guarantee portfolio. Banks with lower NPA/claim rates receive a discount (up to −10% on the base rate). Banks with higher claim rates are charged a risk premium of +15%, +30%, +50%, or +70% on the base rate. This means two banks lending the same amount to the same type of borrower may pay different AGF amounts. Your bank’s CGTMSE empanelment cell will know the current risk rating.
How is the first-year CGTMSE fee calculated on a pro-rata basis?
For the first year, CGTMSE charges AGF from the date of first disbursement (or date of guarantee registration, whichever is applicable) to 31 March of that financial year. The formula is: First Year AGF = Annual AGF × Number of Days ÷ 365. For example, if a loan is disbursed on 15 November 2025, the first year AGF covers 15 November 2025 to 31 March 2026 = 136 days, and the AGF would be Annual AGF × 136 ÷ 365. From the second year onwards, the full annual fee is charged from 1 April to 31 March.
Can the CGTMSE fee be recovered from the borrower?
Yes. Banks are permitted to recover the AGF from the borrower, and in practice most banks do charge the AGF to the MSME borrower’s account annually. The RBI has permitted this under the CGTMSE scheme guidelines. However, the legal liability for payment of AGF to CGTMSE rests with the MLI (bank). If the bank does not pay on time, the guarantee may lapse irrespective of whether the borrower has been charged. The bank’s credit department must ensure timely remittance of AGF to CGTMSE.