GoI launches new credit guarantee scheme for MSMEs covering loans up Rs 100 cr

The government has approved introduction of Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME) for providing 60% guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for credit facility upto Rs.100 crore sanctioned to eligible MSMEs under MCGS-MSME for purchase of equipment / machinery, the finance ministry said in a statement. For availing the scheme, the MSMEs should fulfil certain conditions which include that the borrower should be an MSME with valid Udyam Registration Number, loan amount guaranteed shall not exceed Rs 100 crore, project cost could be of higher amounts also and minimum cost of equipment /machinery is 75 per cent of project cost.