New Delhi, The central government has announced a new loan guarantee scheme called MCGS for small, micro and medium enterprises. In this, companies can get loans without collateral
What is the new credit guarantee scheme for MSME?
The National Credit Guarantee Corporation will guarantee up to 60 percent of the loans of small businesses in this scheme.
For this, the member institutions that provide loans, MLIs, have been allowed to provide loans of up to Rs 100 crore to eligible small businesses.
This was announced in the Union Budget 2024-25, and is now being implemented before the budget presentation of the next financial year. It has been announced that this guarantee scheme will be applicable to all loans sanctioned under the MCGS, MSME scheme.
Must be registered as a small business entity on the ‘Udhyam’ platform. Can apply for a loan to purchase tools and machinery. Guarantee is valid for four years Guarantee up to Rs 7 lakh is available
Loans taken for the purchase of tools and machinery for business will benefit from this guarantee scheme. Industry experts said that this will allow small, micro and medium enterprises to get loans from financial institutions and banks without any collateral.
They also said that this loan guarantee scheme will help attract investment in the small business sector, promote production and increase exports.
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