+
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 Urban

Transrail PAT Doubles to Rs 1.06 Billion in Q1 FY26

Transrail Lighting Limited, a leading Indian EPC firm specialising in power transmission and distribution (T&D), reported robust financial performance for the quarter ended 30 June 2025 (Q1 FY26).The company recorded a consolidated operational revenue of Rs 16.6 billion, marking an 81 per cent year-on-year increase. EBITDA rose 66 per cent to Rs 2 billion, while Profit After Tax (PAT) more than doubled to Rs 1.06 billion, representing a 105 per cent growth from Q1 FY25. PAT margin improved to 6.33 per cent, up 46 basis points from the previous year.Key Operational Highlights:Strong executi..

Next Story
Infrastructure Urban

Allied Digital PAT Grows 40 per cent YoY to Rs 140 Million in Q1 FY26

Allied Digital Services Limited (ADSL), a leading global provider of IT services and solutions, reported strong financial performance for the first quarter ended 30 June 2025.For Q1 FY26, consolidated revenue rose by 22 per cent year-on-year to Rs 2.19 billion, while EBITDA increased 16 per cent to Rs 220 million. Profit After Tax (PAT) grew 40 per cent YoY to Rs 140 million, reflecting robust operational execution.Revenue Breakdown:India revenue surged 31 per cent YoY to Rs 800 million, underlining its role as the company’s primary growth driver.Revenue from Rest of World (RoW) grew 18 per ..

Next Story
Infrastructure Energy

Gujarat Gas PAT Rises 14 per cent QoQ to Rs 3.27 Billion

Gujarat Gas Limited has announced its financial and operational performance for the quarter ended 30 June 2025 (Q1 FY26), reporting record CNG volumes and quarter-on-quarter growth in both EBITDA and net profit.Financial Performance – Q1 FY26Revenue from operations stood at Rs 11.07 billion, down from Rs 11.62 billion in Q1 FY25.EBITDA rose to Rs 5.79 billion, compared to Rs 5.74 billion in the same quarter last year and up 11 per cent from Q4 FY25.Profit After Tax (PAT) was Rs 3.27 billion, showing a 14 per cent increase from Rs 2.87 billion in Q4 FY25, though marginally lower than Rs 3.30 ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?