{"id":150,"date":"2025-03-18T14:38:08","date_gmt":"2025-03-18T14:38:08","guid":{"rendered":"https:\/\/efinlab.in\/?p=150"},"modified":"2025-03-18T14:38:10","modified_gmt":"2025-03-18T14:38:10","slug":"government-rolls-out-mutual-credit-guarantee-scheme-provides-60-guarantee-for-credit-facility-up-to-rs-100-crore","status":"publish","type":"post","link":"https:\/\/efinlab.in\/?p=150","title":{"rendered":"Government Rolls Out Mutual Credit Guarantee Scheme: provides 60% guarantee for credit facility up to Rs.100 crore"},"content":{"rendered":"\n

Government Launches Mutual Credit Guarantee Scheme for MSMEs to Boost Equipment Purchase<\/strong><\/p>\n\n\n\n

The Indian government has introduced the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME)<\/strong> to provide financial support to Micro, Small, and Medium Enterprises (MSMEs) looking to purchase equipment or machinery. Under this scheme, the National Credit Guarantee Trustee Company Limited (NCGTC)<\/strong> will offer a 60% guarantee coverage<\/strong> on credit facilities of up to Rs. 100 crore<\/strong> sanctioned by Member Lending Institutions (MLIs).<\/p>\n\n\n\n

Who Can Apply?<\/strong><\/h3>\n\n\n\n

To benefit from this scheme, MSMEs must meet the following eligibility criteria:<\/p>\n\n\n\n

    \n
  • The MSME must have a valid Udyam Registration Number<\/strong>.<\/li>\n\n\n\n
  • It should not be classified as a Non-Performing Asset (NPA)<\/strong> by any lender.<\/li>\n\n\n\n
  • The cost of equipment or machinery should be at least 75% of the total project cost<\/strong>.<\/li>\n<\/ul>\n\n\n\n

    How the Scheme Works<\/strong><\/h3>\n\n\n\n

    The scheme is implemented by NCGTC<\/strong>, a company under the Ministry of Finance, Government of India<\/strong>. Banks, All India Financial Institutions (AIFIs), and Non-Banking Financial Companies (NBFCs)<\/strong> can participate as lending institutions after signing an agreement with NCGTC.<\/p>\n\n\n\n

    Once a loan is sanctioned to an eligible MSME, the lending institution submits the loan details on NCGTC’s portal along with the required fees<\/strong>. After verification, the lender receives a confirmation that the loan is guaranteed under the scheme, ensuring lower risk and better access to finance for MSMEs.<\/p>\n\n\n\n

    Why is this Important?<\/strong><\/h3>\n\n\n\n

    MSMEs play a crucial role in India’s economy, but many struggle to secure funding due to high risks perceived by lenders. The MCGS-MSME<\/strong> aims to bridge this gap by providing financial security, making it easier for small businesses to invest in new technology and equipment<\/strong>. This initiative is expected to drive economic growth, boost productivity, and create more job opportunities.<\/p>\n\n\n\n

    For MSMEs looking to upgrade their machinery and enhance efficiency, this scheme offers a golden opportunity. Interested enterprises should check their eligibility and approach their banks or NBFCs to avail of the benefits.<\/p>\n\n\n\n

    Stay tuned for more updates on financial schemes designed to support Indian businesses!<\/p>\n","protected":false},"excerpt":{"rendered":"

    Government Launches Mutual Credit Guarantee Scheme for MSMEs to Boost Equipment Purchase The Indian government has introduced the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) to provide financial support to Micro, Small, and Medium Enterprises (MSMEs) looking to purchase equipment or machinery. Under this scheme, the National Credit Guarantee Trustee Company Limited (NCGTC) will offer […]<\/p>\n","protected":false},"author":1,"featured_media":151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-150","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/efinlab.in\/wp-content\/uploads\/2025\/03\/pic-1.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/efinlab.in\/index.php?rest_route=\/wp\/v2\/posts\/150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/efinlab.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/efinlab.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/efinlab.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/efinlab.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=150"}],"version-history":[{"count":1,"href":"https:\/\/efinlab.in\/index.php?rest_route=\/wp\/v2\/posts\/150\/revisions"}],"predecessor-version":[{"id":152,"href":"https:\/\/efinlab.in\/index.php?rest_route=\/wp\/v2\/posts\/150\/revisions\/152"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/efinlab.in\/index.php?rest_route=\/wp\/v2\/media\/151"}],"wp:attachment":[{"href":"https:\/\/efinlab.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/efinlab.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/efinlab.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}