Government Introduces ₹100 Crore MCGS-MSME Scheme to Boost Manufacturing Sector
| Key Points | Details |
|---|---|
| Why in News? | The government launched a ₹100 crore Mutual Credit Guarantee Scheme (MCGS-MSME) to boost the MSME manufacturing sector by easing access to credit for equipment and machinery purchases. It provides 60% guarantee through NCGTC for loans up to ₹100 crore, supporting 'Make in India' and MSME growth. |
| Scheme Name | Mutual Credit Guarantee Scheme (MCGS-MSME) |
| Corpus | ₹100 crore |
| Guarantee Coverage | 60% through NCGTC |
| Maximum Loan Amount | ₹100 crore |
| Eligibility | MSMEs with a valid Udyam Registration Number |
| Fund Utilization | At least 75% of loan for equipment and machinery purchase |
| Repayment Period | Up to 8 years (for loans up to ₹50 crore) |
| Moratorium Period | 2 years (for loans up to ₹50 crore); extended for higher loans |
| Upfront Fee | 5% of loan amount |
| Implemented by | National Credit Guarantee Trustee Company Limited (NCGTC) |
| Linked Initiative | 'Make in India' |