India, March 19 -- The Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) has been introduced to provide 60% guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC). This scheme offers support to Member Lending Institutions (MLIs) for credit facilities up to Rs.100 crore sanctioned to eligible MSMEs for the purchase of equipment and machinery.
Under the scheme, eligible borrowers must be registered MSMEs with a valid Udyam Registration Number, must not have non-performing asset (NPA) status with any lender, and must ensure that at least 75% of the project cost is allocated to equipment or machinery. The NCGTC, a fully owned entity of the Department of Financial Services, Ministry of Finance, will oversee ...