@Shiv Kumar- Yes you can use it for Hotels. It is infact easy when the land is yours and you are going to construct the Building.

@Anup – Technically you are eligible. But getting a loan is very difficult. Please read the previous comments. Intent is to help SMEs which have proved their viability and those who do not have a collateral

@Ankush – Hope this is not too late. Frankly, it is quite difficult for a first time entrepreneur to get CGTMSE Loan. On the other hand, if land is yours and building cost is substantial, you definitely stand a chance. Please write to GYM@smbenablers.com, if you want more info than what is found in this post and comments

Not clear what you need. Without specifics I cannot give you any recommendation. If you want loan proposal format or project report format, you may download them from our resources page here http://smbenablers.com/resources.html

If you have any specific questions you may pst here or send me a mail

We are going to open new manufacturing unit of absorbent cotton in patenership firm, sir we want loan upto 60 laks, so kindlly give me the details about loan proposal.

with Regards

Nilesh

That said, CGTMSE scheme is really a good one and I know of quite a few worthy recipients. Some of them are my clients. I would suggest, you approach banks under CGTMSE, post monetization and pre VC. It normally works. Major trouble is that bankers do not understand most of the IT products. If you have a plastic parts manufacturing project for 2 crores, you will get CGTMSE loan for 1 crore, if you put in one crore and if you can show a few verifiable purchase commitments. So, all in all it is agood scheme, I would say

This is so not very startup friendly thing, where a real problem is not availability of funds in market, but the availability of people betting on first time entrepreneurs etc. Thats where I thought Government of India is trying to fill the gap. But as per your explanation it seems , Government of India/Banks are taking up this scheme like many others , for just the sake of planning

Regards
kapil

Technically, yes. But getting loan under CGTMSE scheme for a start up is next to impossible if it is the entrepreneur’s first time venture. In case of a start up with an entrepreneur without a history, we are in effect asking the banker, “Why don’t you finance me Rs.100 lakhs to take care of my burn rate? I might pay you back if my venture is successful!!”. The banker has his pension to worry about and hence they take a safer route and I don’t blame them.

I have obtained a small loan for an IT company which is running successfully. I know of two other companies for whom CGTMSE loan would be a cakewalk but they are interested in VC and take home some money first for their sweat. I don’t blame them either.

Prime Security is obviously there. All the existing and future assets of the company will be secured. Whatever hardware you may be buying will be hypothecated. Depending on facts of the case, some kind of security would be needed. For example, if you are having a deal with a reputed company to provide service on a long term contract, you will most definitely get CGTMSE loan if you can register a power of attorney with the buyer to the effect that, they will pay all your dues to “YourCompany A/C Lending Banker” so that the proceeds land in a place where they can monitor its movement.

So, it all depends. For a software company, there are other options, though. Why don’t you register here http://www.smbenablers.com/form.html You will be sent a link for downloading a ebook compiled by me on finance options for SMEs.

Hope this helps.

Cordially

Srikanth

Just curious to get info from a first hand exp person:)

Thanks
Kapil