Union Finance Minister launches Mutual Credit Guarantee Scheme
THE JHARKHAND STORY DESK Mumbai, Feb 17: Finance Minister Nirmala Sitharaman today launched the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME),…
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THE JHARKHAND STORY DESK
Mumbai, Feb 17: Finance Minister Nirmala Sitharaman today launched the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), aimed at enabling micro, small, and medium enterprises to secure loans of up to ₹100 crore for purchasing machinery and equipment without the need for collateral.
This initiative, originally announced in the July 2024 Budget, seeks to enhance access to credit and strengthen the manufacturing sector under the Make in India vision.
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Under the scheme, the government has approved 60% guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC) for loans sanctioned by Member Lending Institutions (MLIs). This coverage ensures financial support for MSMEs investing in plant and machinery.
During a post-budget interaction event in Mumbai, Sitharaman handed over sanction letters to the first eleven beneficiaries of the scheme.
She emphasized that the credit guarantee program eliminates the requirement for collateral or third-party guarantees, making it easier for businesses to obtain term loans for equipment purchases.
