Credit Guarantee Schemes have become an important policy instrument for improving access to institutional finance among Micro, Small, and Medium Enterprises (MSMEs). This study examines the role of Credit Guarantee Schemes in supporting MSME growth in Telangana by analysing entrepreneurs' awareness, accessibility of collateral-free credit, banking support, and the contribution of guaranteed loans to business development. Primary data were collected through a structured questionnaire from MSME entrepreneurs and banking professionals, while secondary information was obtained from government reports, journals, and financial publications. The findings indicate that Credit Guarantee Schemes significantly improve credit accessibility, promote entrepreneurship, support employment generation, and strengthen financial inclusion. The study recommends greater awareness programmes, simplified loan procedures, enhanced digital banking services, and stronger institutional coordination to maximize the effectiveness of credit guarantee initiatives.