CGTMSE guarantee cover goes live on TReDS to strengthen MSME working capital access

Following the Union Budget 2026-27 announcement (presented 1 February 2026), the Ministry of MSME integrated the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with the RBI-regulated Trade Receivables Discounting System (TReDS), with guarantee coverage now live on three platforms - M1xchange, RXIL and DTX (KredX). The scheme covers 75% of the amount in default, with maximum exposure of ₹10 crore for an MSE buyer and ₹2 crore for an MSE seller on a revolving basis, both buyer and seller having to be Micro or Small Enterprises. TReDS invoice discounting has grown from ₹40,000 crore in FY 2021-22 to ₹3.5 lakh crore in FY 2025-26, and the integration digitises the entire guarantee journey, including real-time eligibility checks and automatic fee calculation for financiers.