CGTMSE Loans for Expanding Units in Jejuri MIDC (Purandar)
Complete guide to collateral-free CGTMSE loan enhancement, eligibility, ₹10 crore limit, and expansion funding for MSMEs operating in Jejuri MIDC.
Jejuri's industrial base runs across two adjoining MIDC estates in Purandar taluka: Jejuri Industrial Area and Additional Jejuri Industrial Area, PIN 412303, about 50 km from Pune city on the Pune–Jejuri Road (NH-965) and rail-linked through Jejuri station on the Pune–Miraj corridor. The operating mix here is established rather than emerging: paint and industrial coatings, engineering and alloy steel, specialty chemicals, pharmaceuticals and industrial biotechnology, with food processing in the wider Jejuri belt.
The names on the plots tell you what the credit demand looks like. Berger Paints runs its Jejuri plant and has publicly committed a second-phase expansion there for automotive and protective coatings. Praj Industries operates its R&D unit in the Additional Jejuri estate. ChampionX Dai-ichi India makes specialty chemicals at Jejuri MIDC, and Akriti Pharmaceuticals manufactures formulations a few plots away. Expansion is this estate's story, and it is the smaller units' story too: an added bay, a new machine line, a cash credit limit that has fallen behind the order book.
So the question we hear most from Jejuri promoters is not "am I eligible for CGTMSE" but "I already have a covered limit — can I get more without mortgaging property?" The scheme documents answer yes, in plain terms, twice over.
The ₹10 Crore Ceiling is Per Borrower, and it Leaves Headroom
CGTMSE guarantees collateral-free credit facilities up to ₹10 crore per eligible borrower. The ceiling moved from ₹5 crore under Circular No. 250/2024-25 dated 18-Mar-2025, effective 01-Apr-2025, and that circular extends the revised ceiling to guarantees approved on or after that date, expressly including enhancement of existing covered working-capital accounts.
The ₹10 crore ceiling is per borrower—not per loan or per bank. Existing and new facilities are aggregated against this overall limit.
For file structuring and lender-fit across Pune district, see our CGTMSE Loan Consultant in Pune guide.
How the Headroom is Actually Counted
| Facility Position | What Counts Against the ₹10 Crore Cap |
|---|---|
| Term loan, fully disbursed | Current outstanding |
| Term loan, partly disbursed | Full sanctioned amount unless formally cancelled. |
| Working Capital (CC/OD) | Entire sanctioned limit regardless of utilisation. |
| Facilities from multiple lenders | Aggregated per borrower. |
A term loan that has been repaid over time gradually rebuilds available headroom under the ₹10 crore ceiling. Conversely, an unused cash-credit limit continues to consume the full sanctioned amount.
Enhancement is Written into the Scheme
Circular No. 251/2024-25 applies the revised guarantee fee to all guarantees approved or renewed on or after 01-Apr-2025, including enhancement of existing covered working-capital facilities.
In practice, the challenge is rarely the scheme itself. The lender reassesses gearing, repayment history, account conduct, turnover routing, and stock statements before approving any enhancement.
Guarantee Cover on the Enhanced Exposure
Cover runs on the amount in default, not on the sanctioned amount. The bands, per the CGS-I scheme document updated as on 01-Apr-2025:
| Borrower Category | Guarantee Cover |
|---|---|
| Standard cover — all eligible MSEs | 75% |
| Women-owned enterprises | 90% |
| MSEs promoted by Agniveers | 90% |
| Micro enterprises, up to ₹5 lakh | 85% (75% above ₹5 lakh) |
| SC/ST entrepreneurs | 85% |
| Persons with Disabilities | 85% |
| ZED-certified units | 85% |
| Units in Aspirational Districts | 85% |
| Transgender entrepreneurs | 85% |
| North East Region, including Sikkim, J&K and Ladakh | 80% up to ₹50 lakh (75% above) |
Units in RBI-identified Credit Deficient Districts receive an additional 5 percentage points over their applicable guarantee cover rate.
What the Expansion Costs in Guarantee Fee
The Annual Guarantee Fee is slab-based, and the slab rides on the borrower's total covered exposure, not on each facility in isolation. Rates per Circular No. 251/2024-25:
| Total Covered Exposure (₹) | AGF (Standard Rate p.a.) |
|---|---|
| 0 – 10 lakh | 0.37% |
| Above 10 lakh – 50 lakh | 0.55% |
| Above 50 lakh – 1 crore | 0.60% |
| Above 1 crore – 2 crore | 0.85% |
| Above 2 crore – 5 crore | 1.00% |
| Above 5 crore – 8 crore | 1.10% |
| Above 8 crore – 10 crore | 1.20% |
These are standard rates; a lender's risk premium or discount can move the applied figure. Note the above ₹1 crore – 2 crore rate: it is 0.85%, and pages still quoting 0.75% or 1.00% for this band are reading a retired table. The fee is charged on the guaranteed amount in the first year and on the outstanding from the second year onward.
Worked Example: A Jejuri Engineering Unit Adding a Machine Line
The unit runs a CGTMSE-covered cash credit of ₹1,00,00,000 and adds an expansion machinery term loan of ₹1,00,00,000.
- Total covered exposure: ₹2,00,00,000
- Applicable slab: Above ₹1 crore – 2 crore
- Standard guarantee cover: 75%
- Guaranteed amount: ₹1,50,00,000
- Applicable AGF: 0.85%
- First-year guarantee fee: ₹1,27,500
- From the second year, the fee is calculated on the outstanding balance.
Who counts as an MSE changed on the same date. Under the revised classification (S.O. 1364(E), effective 01-Apr-2025), a Micro enterprise is one with investment up to ₹2.5 crore and turnover up to ₹10 crore; a Small enterprise runs to ₹25 crore investment and ₹100 crore turnover. The older ₹1 crore / ₹5 crore investment pair is retired. Most Jejuri MIDC units that assumed they had outgrown "Small" now find they have not, which means the scheme is open to them for the expansion round.
Documents an Expansion File Needs
An enhancement or add-on file is judged on conduct as much as on projections. Keep ready:
Existing Loan Documents
Existing sanction letter, latest renewal, CGTMSE guarantee details and fee payment receipts.
Financial Records
Twelve months' operating account statements, repayment history, three years' audited financials and current provisional statements.
Business Compliance
GST returns for twelve months, stock and book-debt statements, machinery quotations, building estimates, Udyam registration and promoter KYC.
Gaps in any of these documents stall the file at the credit desk, not at CGTMSE.
How CCF Runs a Jejuri Expansion File
We appraise before we approach. First the grade: DSCR on the combined obligation, gearing after the new debt, banking conduct on the existing limit, and the honest headroom math against the ₹10 crore ceiling. Then the match. Nationalized and private lenders on our panel read expansion files differently, and the right desk for a pharma unit enhancing working capital is not the right desk for a coatings or engineering unit taking a machinery term loan. Then the file itself, built login-ready so the sanction moves in one round instead of three. Weak points are fixed before a banker sees them, not explained afterwards.
How the cash credit limit itself is set for process industries is covered in our guide to CGTMSE Loans for Chemical and Pharma Units in Kurkumbh MIDC .
Frequently Asked Questions
My unit already has a CGTMSE-covered cash credit. Can I add a term loan?
Yes. Additional facilities for the same borrower can be covered within the ₹10 crore aggregate per-borrower headroom, including facilities from a different lender, subject to the lender's appraisal of the larger exposure.
Is the ₹10 crore CGTMSE ceiling per loan or per borrower?
Per borrower. A fully disbursed term loan counts at its outstanding, a partly disbursed one at its full sanction unless the undrawn part is cancelled, and working capital at its full sanctioned limit regardless of utilisation. Facilities across lenders aggregate.
Does enhancing my existing covered limit get the revised, lower fee?
Yes. Circular 251/2024-25 applies the revised AGF structure to guarantees approved or renewed on or after 01-Apr-2025 and names enhancement of already-covered working-capital accounts within its scope. Circular 250/2024-25 does the same on the ceiling side.
What does the fee come to on ₹2 crore of covered exposure?
The slab is 0.85%. At standard 75% cover the guaranteed amount is ₹1,50,00,000, so the first-year fee works out to ₹1,27,500, with subsequent years charged on the outstanding.
Will the bank ask for property collateral or a personal guarantee?
No collateral and no third-party guarantee can be taken on a covered facility; primary security is the assets created out of the credit. Promoters' own guarantees are a different matter: Circular 258/2025-26 keeps guarantees from the proprietor, partners or promoter-directors outside the third-party definition, so a lender may still obtain those.
Which Jejuri MIDC units qualify?
Micro and Small enterprises under the revised classification, across manufacturing, services, and retail or wholesale trade alike. Medium enterprises sit outside the scheme, but the revised thresholds mean far fewer Jejuri units are "Medium" than their promoters assume.
Talk to Us Before You Approach the Branch
Banks advertise. Brokers claim. CCF grades. If your Jejuri MIDC unit is planning an expansion, we will grade the file first and tell you what it supports: the enhancement, the add-on term loan, or both.
Credit Core Finance
Koregaon Park, Pune