The Ministry of Finance (MoF) on March 18, 2025, notified regarding the Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME).
The Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME) has been launched for providing 60% guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for credit facility up to Rs. 100 crore sanctioned to eligible MSMEs under MCGS-MSME for purchase of equipment/ machinery.
The eligibility criteria for borrowers under Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is as below:
• It should be an MSME with valid Udyam Registration Number;
• It should not be an NPA with any lender;
• Minimum cost of equipment /machinery is 75% of project cost;
Further, it is stated that the Scheme is being implemented by National Credit Guarantee Trustee Company Limited (NCGTC), a wholly owned company of Department of Financial Services, Ministry of Finance, Government of India. The MLI shall sanction loans to eligible borrowers and then submit details of the loan account on the portal of NCGTC along with payment of fees, whereupon the MLI shall get a confirmation of loan being guaranteed under the Scheme.
[Release ID: 2112322]
