MCGS-MSME offers 60% guarantee on credit up to Rs 1 Billion
ECONOMY & POLICY

MCGS-MSME offers 60% guarantee on credit up to Rs 1 Billion

The Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME) has been launched for providing 60 per cent guarantee coverage by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs) for credit facility up to Rs 1 billion sanctioned to eligible MSMEs under MCGS-MSME for purchase of equipment/ machinery. 

The eligibility criteria for borrowers under Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is as below: 

  • It should be an MSME with valid Udyam Registration Number; 
  • It should not be an NPA with any lender; 
  • Minimum cost of equipment /machinery is 75 per cent of project cost; 
The Scheme is being implemented by National Credit Guarantee Trustee Company Limited (NCGTC), a wholly owned company of Department of Financial Services, Ministry of Finance, Government of India. The MLI shall sanction loans to eligible borrowers and then submit details of the loan account on the portal of NCGTC along with payment of fees, whereupon the MLI shall get a confirmation of loan being guaranteed under the Scheme. 

The Scheduled Commercial Banks (SCBs) / All India Financial Institutions (AIFIs) and Non-Banking Finance Companies (NBFCs), shall be the eligible MLIs under the Scheme, subject to execution of an agreement by them with NCGTC. 

Further, various measures pertaining to direct taxes have been undertaken recently by the government for reducing the compliance burden for smaller businesses and individual tax payers: - 
  • Provisions for presumptive taxation for businesses under Section 44 AD and Section 44 AE of the Income-tax Act, 1961 (the Act). 
  • Provisions for tax audit for businesses under Section 44 AB of the Act. 
  • Provision for reduction in compliance burden by omission of TCS on sale of specified goods under Section 206C of the Act. 
  • Rationalization of tax deducted at source (TDS) rates under various provisions of the Act. 
  • Simplification of the Income-tax Act is proposed. 
The new Income-tax Bill 2025 proposes to make the direct tax provisions concise, lucid, easy to read and understand. Redundant provisions have been eliminated and the drafting style of the new Bill is straightforward and clear. 

This information was given by Minister of State for Finance Pankaj Chaudhary in a written reply to a question in Rajya Sabha today. 

News source: PIB 
                  

The Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME) has been launched for providing 60 per cent guarantee coverage by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs) for credit facility up to Rs 1 billion sanctioned to eligible MSMEs under MCGS-MSME for purchase of equipment/ machinery. The eligibility criteria for borrowers under Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is as below: It should be an MSME with valid Udyam Registration Number; It should not be an NPA with any lender; Minimum cost of equipment /machinery is 75 per cent of project cost; The Scheme is being implemented by National Credit Guarantee Trustee Company Limited (NCGTC), a wholly owned company of Department of Financial Services, Ministry of Finance, Government of India. The MLI shall sanction loans to eligible borrowers and then submit details of the loan account on the portal of NCGTC along with payment of fees, whereupon the MLI shall get a confirmation of loan being guaranteed under the Scheme. The Scheduled Commercial Banks (SCBs) / All India Financial Institutions (AIFIs) and Non-Banking Finance Companies (NBFCs), shall be the eligible MLIs under the Scheme, subject to execution of an agreement by them with NCGTC. Further, various measures pertaining to direct taxes have been undertaken recently by the government for reducing the compliance burden for smaller businesses and individual tax payers: - Provisions for presumptive taxation for businesses under Section 44 AD and Section 44 AE of the Income-tax Act, 1961 (the Act). Provisions for tax audit for businesses under Section 44 AB of the Act. Provision for reduction in compliance burden by omission of TCS on sale of specified goods under Section 206C of the Act. Rationalization of tax deducted at source (TDS) rates under various provisions of the Act. Simplification of the Income-tax Act is proposed. The new Income-tax Bill 2025 proposes to make the direct tax provisions concise, lucid, easy to read and understand. Redundant provisions have been eliminated and the drafting style of the new Bill is straightforward and clear. This information was given by Minister of State for Finance Pankaj Chaudhary in a written reply to a question in Rajya Sabha today. News source: PIB                   

Next Story
Technology

Constructive Automation

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Real Estate

Google India’s New Campus

India continues to cement its position as a global digital powerhouse – and Google’s latest milestone reinforces this trajectory with the inauguration of Ananta, one of its largest offices worldwide. CW explores the design, sustainability and construction aspects of this landmark campus in Bengaluru.Significance of AnantaLocated in Mahadevapura, Bengaluru, Ananta spans 1.6 million sq ft and is situated within Bagmane Tech Park. Named after the Sanskrit word for ‘infinite’, this state-of-the-art, 11-storey facility is Google’s fourth office in Bengaluru. It is designed to foster colla..

Next Story
Infrastructure Urban

Indian Delegation Visits South Africa for Trade and Investment Talks

A nine-member Indian delegation participated in the second session of the India-South Africa Joint Working Group on Trade and Investment (JWGTI) held in Pretoria from 22 to 23 April 2025. Discussions were conducted in a cordial atmosphere, focusing on expanding trade ties, boosting investments, and fostering greater people-to-people exchanges. The meeting was co-chaired by Malose Letsoalo, Chief Director, Bilateral Trade Relations, Department of Trade, Industry and Competition of South Africa, and Priya Nair, Economic Adviser, Department of Commerce, India. Delegates from the High Commission ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?