{"id":358668,"date":"2026-03-23T13:04:18","date_gmt":"2026-03-23T07:34:18","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=358668"},"modified":"2026-03-23T13:04:18","modified_gmt":"2026-03-23T07:34:18","slug":"revised-mutual-credit-guarantee-scheme-for-msmes-mcgs-msme","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/revised-mutual-credit-guarantee-scheme-for-msmes-mcgs-msme\/","title":{"rendered":"Revised Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME)"},"content":{"rendered":"<p style=\"text-align: left;\"><strong>News:<\/strong> Recently, the Mutual Credit Guarantee Scheme (MCGS) has been modified to support Micro, Small and Medium Enterprises (MSME) Manufacturers and Exporters in line with Budget 2025-26.<\/p>\n<h2 style=\"text-align: left;\">About Revised Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME)<\/h2>\n<figure id=\"attachment_358670\" aria-describedby=\"caption-attachment-358670\" style=\"width: 530px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-358670\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Screenshot_23-3-2026_112344_www.ncgtc_.in_.jpeg?resize=530%2C136&#038;ssl=1\" alt=\"\" width=\"530\" height=\"136\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Screenshot_23-3-2026_112344_www.ncgtc_.in_.jpeg?resize=300%2C77&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Screenshot_23-3-2026_112344_www.ncgtc_.in_.jpeg?resize=1024%2C263&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Screenshot_23-3-2026_112344_www.ncgtc_.in_.jpeg?resize=768%2C197&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Screenshot_23-3-2026_112344_www.ncgtc_.in_.jpeg?resize=1536%2C394&amp;ssl=1 1536w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Screenshot_23-3-2026_112344_www.ncgtc_.in_.jpeg?resize=1568%2C402&amp;ssl=1 1568w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Screenshot_23-3-2026_112344_www.ncgtc_.in_.jpeg?w=1837&amp;ssl=1 1837w\" sizes=\"auto, (max-width: 530px) 100vw, 530px\" \/><figcaption id=\"caption-attachment-358670\" class=\"wp-caption-text\">Source: NCGTC<\/figcaption><\/figure>\n<ul>\n<li style=\"text-align: left;\">It was<strong> launched to support Micro, Small and Medium Enterprises (MSME) Manufacturers and Exporters. <\/strong><\/li>\n<li style=\"text-align: left;\">It was initially launched in<strong> January 2025<\/strong>.<\/li>\n<li style=\"text-align: left;\"><strong>Implementing agency: <\/strong>The scheme will be implemented by<strong> National Credit Guarantee Trustee Company Ltd (NCGTC).<\/strong><\/li>\n<li style=\"text-align: left;\"><strong>Objectives:<\/strong>\n<ul>\n<li>To provide affordable<strong> access of credit to MSMEs.<\/strong><\/li>\n<li style=\"text-align: left;\">To <strong>improve financial accessibility for MSMEs,<\/strong> particularly those involved in manufacturing and exports.<\/li>\n<li>\u00a0To<strong> support enterprises in enhancing production,<\/strong> improve quality and extend their global reach.<\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: left;\"><strong>Eligibility:<\/strong> Under Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), the borrower:\n<ul>\n<li style=\"text-align: left;\"><strong>should be an MSME<\/strong> with <strong>valid Udyam Registration number<\/strong>.<\/li>\n<li><strong>should not be an NPA<\/strong> with any lender.<\/li>\n<li><strong>minimum cost of equipment \/machinery is 65% of project cost.<\/strong><\/li>\n<li><strong>Service sector MSMEs<\/strong> also included in the Scheme.<\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: left;\"><strong>Features:<\/strong> The scheme provides<strong> 60% guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs)<\/strong> for <strong>credit facility upto \u20b9 100 crore<\/strong> sanctioned to eligible MSMEs under MCGS-MSME for purchase of equipment\/ machinery.<\/li>\n<li style=\"text-align: left;\"><strong>Modifications in the <a href=\"https:\/\/forumias.com\/blog\/mutual-credit-guarantee-scheme-for-msmes\/\">existing \u201cMCGS\u2013MSME\u201d scheme<\/a>:<\/strong>\n<ul>\n<li><strong>Upfront Contribution (For exporters also):<\/strong> The <strong>upfront contribution is fixed at 2% of the loan amount<\/strong> (maximum \u20b940 lakh), out of which 1% each will be refunded in the 4th and 5th year of the guarantee period.<\/li>\n<li><strong>Guarantee Tenure:<\/strong> The guaranteed tenure under the scheme will <strong>expire after 10 years.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Special provisions for exporters<\/strong>\n<ul>\n<li style=\"text-align: left;\"><strong>Eligible exporters:<\/strong> <strong>Profitable units having exported at least 25% of their sales turnover<\/strong> in each of previous 3 financial years and<strong> satisfying certain export realisation conditions.<\/strong><\/li>\n<li style=\"text-align: left;\"><strong>Guaranteed Loan Amount:<\/strong> The guaranteed loan amount available under this provision is <strong>up to \u20b920 crore.<\/strong><\/li>\n<li style=\"text-align: left;\"><strong>Guarantee Coverage:<\/strong> The guarantee coverage provided under the scheme is 75% of the amount in default.<\/li>\n<li style=\"text-align: left;\"><strong>Guarantee Fee: <\/strong>The guarantee fee for the <strong>first year is nil,<\/strong> and thereafter,<strong> a fee of 0.50% of the outstanding loan amount will be charged every year.\u00a0<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: Recently, the Mutual Credit Guarantee Scheme (MCGS) has been modified to support Micro, Small and Medium Enterprises (MSME) Manufacturers and Exporters in line with Budget 2025-26. About Revised Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME) It was launched to support Micro, Small and Medium Enterprises (MSME) Manufacturers and Exporters. It was initially launched&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/revised-mutual-credit-guarantee-scheme-for-msmes-mcgs-msme\/\">Continue reading <span class=\"screen-reader-text\">Revised Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME)<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,956,12039],"tags":[11872,11853],"class_list":["post-358668","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-schemes-and-programs","category-knolls","tag-9pm-daily-factly","tag-dd-news","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/358668","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\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=358668"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/358668\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=358668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=358668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=358668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}