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
Real Estate

Birla Estates Tops Global GRESB 2025 Rankings

Birla Estates (BEPL), a wholly owned subsidiary of Aditya Birla Real Estate (formerly Century Textiles and Industries Limited), has been recognised as a Sector Leader in the 2025 GRESB Real Estate Assessment, securing top honours across multiple global and regional categories.Birla Estates’ Achievements in GRESB 2025:Global Sector Leader – ResidentialGlobal Sector Leader – Non-Listed ResidentialRegional Sector Leader – Asia – ResidentialRegional Sector Leader – Non-Listed – Asia – ResidentialThese distinctions reaffirm Birla Estates’ exceptional performance in Environmental, ..

Next Story
Infrastructure Transport

Progota India Secures RDSO Clearance for Kavach 4.0

Concord Control Systems, one of India’s leading manufacturers of embedded electronic and critical system solutions, announced that its associate company, Progota India, has received Technical Prototype Clearance from the Research Designs and Standards Organisation (RDSO) for Kavach 4.0, the latest version of Indian Railways’ indigenous Automatic Train Protection (ATP) system.With this clearance, Progota has been formally approved to execute its ongoing trial order from South Central Railway, marking a key milestone in India’s railway modernization journey. The approval also establishes P..

Next Story
Infrastructure Urban

MPS Interactive Systems Completes Full Acquisition of Liberate Group

MPS Interactive Systems (MPSi), a material subsidiary of MPS, has completed the acquisition of the remaining shareholding in the Liberate Group of Companies—comprising Liberate Learning, App-eLearn, and Liberate eLearning.With this transaction, MPSi now holds 100 per cent ownership of all entities within the Liberate Group, making them its wholly owned subsidiaries. The acquisition was executed in line with the valuation methodology defined in the original transaction documents.Commenting on the development, Rahul Arora, Chairman and CEO of MPS, said, “The corporate learning sector continu..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?