The Credit Guarantee Fund Scheme for Micro and Small Enterprises provides credit guarantee coverage for collateral-free loans to micro and small enterprises from banks. Eligible enterprises can receive term loans or working capital facilities up to Rs. 100 lakh without collateral or third party guarantees. The scheme charges a guarantee fee of 1-1.5% of the loan amount and an annual service fee of 0.5-0.75% per year. It guarantees repayment of 75-85% of defaulted loan amounts, depending on loan size and borrower category, up to a maximum ceiling.