Mumbai, Feb. 17 -- Finance Minister Nirmala Sitharaman on Monday launched the Mutual Credit Guarantee Scheme for MSMEs (MCGS - MSME) for facilitating loans upto Rs.100 crore to Micro, Small and Medium Enterprisess for the purchase of machinery or equipment without collateral.

This was announced in the July 2024 Budget by the finance minister.

The finance minister also handed over sanction letters to the first eleven beneficiaries under the scheme during a post-budget interaction event in Mumbai.

Sitharaman announced that a credit guarantee scheme will be introduced to facilitate term loans to MSMEs for the purchase of machinery and equipment without collateral or third-party guarantee.

The government had approved the introduction of t...