{"id":325153,"date":"2025-01-30T11:47:26","date_gmt":"2025-01-30T06:17:26","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=325153"},"modified":"2025-01-30T11:47:26","modified_gmt":"2025-01-30T06:17:26","slug":"mutual-credit-guarantee-scheme-for-msmes","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/mutual-credit-guarantee-scheme-for-msmes\/","title":{"rendered":"Mutual Credit Guarantee Scheme for MSMEs"},"content":{"rendered":"<p><strong>News<\/strong>&#8211; The Union government recently approved the introduction of a new credit guarantee scheme for the micro, small and medium enterprises (MSMEs) that was announced in the FY25 Budget.<\/p>\n<h2>About Mutual Credit Guarantee Scheme for MSMEs<\/h2>\n<p><strong>Aim- <\/strong>To provide 60% guarantee coverage through the <strong>National Credit Guarantee Trustee Company Limited (NCGTC)<\/strong> to <strong>Member Lending Institutions (MLIs)<\/strong> for credit facilities of up to Rs.100 crore, enabling eligible <strong>MSMEs<\/strong> to purchase equipment and machinery.<\/p>\n<p>The scheme facilitates <strong>collateral-free loans<\/strong> from banks and financial institutions to support MSME growth and expansion.<\/p>\n<p><strong>Key Features:<\/strong><\/p>\n<ul>\n<li><strong>Eligibility:<\/strong> Borrower must be an <strong>MSME<\/strong> with a valid <strong>Udyam Registration Number<\/strong>.<\/li>\n<li><strong>Loan Amount:<\/strong> Guaranteed loan amount <strong>up to Rs. 100 crore<\/strong> (Project cost may exceed this).<\/li>\n<li><strong>Equipment\/Machinery Cost:<\/strong> Must be <strong>at least 75% of the project cost<\/strong>.<\/li>\n<li><strong>Repayment Period:<\/strong>\n<ul>\n<li><strong>Loans up to Rs.50 crore:<\/strong> Up to <strong>8 years<\/strong>, with a <strong>2-year moratorium<\/strong> on principal installments.<\/li>\n<li><strong>Loans above Rs.50 crore:<\/strong> May have a <strong>longer repayment schedule and moratorium period<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Upfront Contribution:<\/strong> <strong>5% of the loan amount<\/strong> to be deposited at the time of guarantee cover application.<\/li>\n<li><strong>Annual Guarantee Fee:<\/strong>\n<ul>\n<li><strong>Nil in the first year<\/strong> of sanction.<\/li>\n<li><strong>1.5% p.a.<\/strong> for the next <strong>3 years<\/strong> (on the loan outstanding as of March 31 of the previous year).<\/li>\n<li><strong>1% p.a.<\/strong> thereafter.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Duration of the Scheme:<\/strong>\n<ul>\n<li>Applicable to all loans sanctioned under <strong>MCGS-MSME<\/strong> for <strong>4 years<\/strong> from the operational guidelines\u2019 issuance or until a <strong>cumulative guarantee of Rs.7 lakh crore<\/strong> is reached, whichever is earlier.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News&#8211; The Union government recently approved the introduction of a new credit guarantee scheme for the micro, small and medium enterprises (MSMEs) that was announced in the FY25 Budget. About Mutual Credit Guarantee Scheme for MSMEs Aim- To provide 60% guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/mutual-credit-guarantee-scheme-for-msmes\/\">Continue reading <span class=\"screen-reader-text\">Mutual Credit Guarantee Scheme for MSMEs<\/span><\/a><\/p>\n","protected":false},"author":10367,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-325153","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/325153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10367"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=325153"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/325153\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=325153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=325153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=325153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}