Government Revises Mutual Credit Guarantee Scheme

On 21st March 2026, the Centre modified the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) to support manufacturers and exporters in line with Budget 2025-26.

About MCGS-MSME

Launched in January 2025.

  • Provides 60% guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC).
  • Applicable to Member Lending Institutions (MLIs).
  • Covers credit facilities up to Rs. 100 crore.
  • Targeted at eligible Micro, Small, and Medium Enterprises (MSMEs).
  • Funds can be used for the purchase of equipment or machinery under the MCGS-MSME scheme.

Modifications in the existing MCGS-MSME Scheme

  • Upfront Contribution: 5% upfront contribution made refundable, 1% each from 4th year onwards, subject to satisfactory ....
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