FM Sitharaman launches Mutual Credit Guarantee Scheme for MSMEs
Mumbai, Feb 17 (SocialNews.XYZ) The Centre on Monday launched the 'Mutual Credit Guarantee Scheme for MSMEs', which was announced in the Union Budget 2024-25 to boost the micro, small, and medium enterprises. The scheme facilitates collateral-free loans to MSMEs by providing loans up to Rs 100 crore for the purchase of plant, machinery, or equipment. The scheme would provide 60 per cent guarantee coverage by the National Credit Guarantee Trustee Company Ltd (NCGTC) to member lending institutions (MLIs) for a credit facility up to Rs 100 crore, sanctioned to eligible MSMEs under MCGS-MSME for the purchase of equipment/machinery.
