New Delhi, Jan. 30 -- In a move to strengthen the micro, small, and medium enterprises (MSMEs) Sector, The Government has come forward with the mutual credit guarantee scheme for MSMEs (MCGS-MSME).

The scheme proposes to give credit guarantee coverage to about Rs 100 crore for every MSME to encourage easier access to financial assistance. The Ministry of Finance stated that the National Credit Guarantee Trustee Company Limited (NCGTC) will offer a 60% guarantee cover to Member Lending Institutions (MLI). The program is expected to be a game-changer in the expansion and modernization of MSMEs.

"The scheme will facilitate collateral-free loans by banks and financial institutions to MSMEs who are in need of debt capital for their expansion...