{"id":29730,"date":"2026-03-22T14:03:03","date_gmt":"2026-03-22T08:33:03","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=29730"},"modified":"2026-03-23T15:17:36","modified_gmt":"2026-03-23T09:47:36","slug":"mutual-credit-guarantee-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/mutual-credit-guarantee-scheme\/","title":{"rendered":"Mutual Credit Guarantee Scheme"},"content":{"rendered":"<h2><b>Mutual Credit Guarantee Scheme Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Government has modified the Mutual Credit Guarantee Scheme (MCGS) to support Micro, Small and Medium Enterprises (MSME) Manufacturers and Exporters in line with Budget 2025-26.\u00a0<\/span><\/p>\n<h2><b>About Mutual Credit Guarantee Scheme<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It provides <\/span><b>60 % guarantee coverage<\/b><span style=\"font-weight: 400;\"> by <\/span><b>National Credit Guarantee Trustee Company Limited (NCGTC) <\/b><span style=\"font-weight: 400;\">to Member Lending Institutions for credit facilities up <\/span><b>to 100 crore<\/b><span style=\"font-weight: 400;\"> rupees <\/span><b>sanctioned to eligible MSMEs<\/b><span style=\"font-weight: 400;\"> under MCGS-MSME for purchase of equipment and machinery.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>Salient Features of Mutual Credit Guarantee Scheme<\/b><\/h2>\n<ul>\n<li><b>Target:<\/b><span style=\"font-weight: 400;\"> Borrower should be an MSME with valid <\/span><b>Udyam Registration Number;<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The eligibility criteria have also been <\/span><b>expanded to service sector MSMEs.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The <\/span><b>minimum project cost requirement<\/b><span style=\"font-weight: 400;\"> towards machinery and equipment has been reduced to <\/span><b>60 per cent from the earlier 75 per cent.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The <\/span><b>5% upfront contribution<\/b><span style=\"font-weight: 400;\"> has been <\/span><b>made refundable<\/b><span style=\"font-weight: 400;\">, with one per cent returned each year from the fourth year onwards, <\/span><b>subject to satisfactory loan performance.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The credit <\/span><b>guarantee would expire after 10 years<\/b><span style=\"font-weight: 400;\">, as compared to the unspecified period in the earlier scheme.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It is applicable to all loans sanctioned under MCGS-MSME during the period <\/span><b>of 4 years<\/b><span style=\"font-weight: 400;\"> or till cumulative guarantee of <\/span><b>Rs. 7 lakh crore are<\/b><span style=\"font-weight: 400;\"> issued, whichever is earlier.<\/span><\/li>\n<li><b>Eligible exporters<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Profitable units having <\/span><b>exported at least 25% of their sales turnover<\/b><span style=\"font-weight: 400;\"> in each of previous 3 financial years<\/span><\/li>\n<li><b>Guaranteed loan<\/b><span style=\"font-weight: 400;\"> amount is <\/span><b>pegged at \u20b920 crore,<\/b><span style=\"font-weight: 400;\"> and upfront contribution is 2% of the loan amount, a <\/span><b>maximum of \u20b940 lakh,<\/b><span style=\"font-weight: 400;\"> with 1% each refundable in the <\/span><b>4th and 5th year<\/b><span style=\"font-weight: 400;\"> of the guarantee period.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/www.newsonair.gov.in\/government-revises-mutual-credit-guarantee-scheme-to-support-msme-manufacturers-exporters\/\" target=\"_blank\" rel=\"nofollow noopener\">News On Air<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mutual Credit Guarantee Scheme aims at providing 60 per cent guarantee coverage by National Credit Guarantee Trustee Company Limited to Member Lending Institutions. Read more about Mutual Credit Guarantee Scheme, Salient Features, Latest News<\/p>\n","protected":false},"author":5,"featured_media":29731,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[6287,21,22,23],"class_list":{"0":"post-29730","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-mutual-credit-guarantee-scheme","9":"tag-prelims-pointers","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/29730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=29730"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/29730\/revisions"}],"predecessor-version":[{"id":94445,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/29730\/revisions\/94445"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/29731"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=29730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=29730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=29730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}