Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME)

60% government guarantee on bank loans to MSMEs for buying plant, machinery or equipment, including service-sector MSMEs; separate terms for exporting units.

Run by

Department of Financial Services, Ministry of Finance (operated by NCGTC)

Funding

Up to ₹1,00,00,00,000

Guarantees 60% of loans up to Rs 100 crore for plant/machinery/equipment. Exporters (25%+ exports for 3 years): loans up to Rs 20 crore with 75% cover.

Your share

Upfront contribution 5% of loan (partly refundable from year 4 if account performs); exporters 2% capped at Rs 40 lakh

Who can apply

• MSME with valid Udyam Registration
• Equipment/machinery at least 60% of project cost (revised March 2026)
• Loan from a member lending institution
• Valid for loans sanctioned within 4 years of guidelines (from 2025) or until Rs 7 lakh crore guaranteed

How to apply

Apply for an equipment or machinery loan at a member bank or lender; the lender seeks the guarantee cover from NCGTC.

Timing

Scheme window ~4 years from 2025 operational guidelines, or until cumulative guarantees reach Rs 7 lakh crore

Last checked

2026-10-11

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