India approves Mutual Credit Guarantee Scheme for MSME
ECONOMY & POLICY

India approves Mutual Credit Guarantee Scheme for MSME

The Indian government recently approved introduction of Mutual Credit Guarantee Scheme for micro, small and medium enterprises (MCGS-MSME scheme) to provide 60-per cent guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to member lending institutions (MLIs) for credit facility up to Rs 1 billion ($11.55 million) for purchase of equipment and machinery. 

The scheme is expected to give a major boost to manufacturing and the ‘Make in India’ initiative, a release from the ministry of finance said. 

The borrower should be an MSME with valid Udyam registration number and minimum cost of equipment and machinery should be three-fourths of the project cost. For loans above that, higher repayment schedule and moratorium period on principal instalments can be considered. 

Annual guarantee fee on loan under the scheme shall be zero during the year of sanction. During the next three years, it shall be 1.5 per cent of loan outstanding as on March 31 of the preceding year; thereafter, the annual guarantee fee shall be 1 per cent. 

The Indian government recently approved introduction of Mutual Credit Guarantee Scheme for micro, small and medium enterprises (MCGS-MSME scheme) to provide 60-per cent guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to member lending institutions (MLIs) for credit facility up to Rs 1 billion ($11.55 million) for purchase of equipment and machinery. The scheme is expected to give a major boost to manufacturing and the ‘Make in India’ initiative, a release from the ministry of finance said. The borrower should be an MSME with valid Udyam registration number and minimum cost of equipment and machinery should be three-fourths of the project cost. For loans above that, higher repayment schedule and moratorium period on principal instalments can be considered. Annual guarantee fee on loan under the scheme shall be zero during the year of sanction. During the next three years, it shall be 1.5 per cent of loan outstanding as on March 31 of the preceding year; thereafter, the annual guarantee fee shall be 1 per cent. 

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?