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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