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Government Approves Mutual Credit Guarantee Scheme for MSME Manufacturing Sector
ECONOMY & POLICY

Government Approves Mutual Credit Guarantee Scheme for MSME Manufacturing Sector

The Indian government has approved the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), providing 60 per cent guarantee coverage via the National Credit Guarantee Trustee Company Ltd. (NCGTC) to registered lenders. MSMEs with a valid Udyam Registration Number can avail loans up to Rs 1 bil...

The Indian government has approved the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), providing 60 per cent guarantee coverage via the National Credit Guarantee Trustee Company Ltd. (NCGTC) to registered lenders. MSMEs with a valid Udyam Registration Number can avail loans up to Rs 1 billion for purchasing machinery or equipment. Loans up to Rs 500 million have an 8-year repayment period, while larger loans allow extended terms. The scheme runs for four years or until Rs 7 trillion in guarantees are issued. Union Finance Minister Nirmala Sitharaman launched MCGS-MSME in Mumbai, aligning with the Union Budget 2024-25 announcement.Contact: Ministry of Finance Website: www.finmin.gov.inTel- 022 23092510

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