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Startup-relevant scheme · Department of Financial Services — NCGTC

Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME)

Open nowChecked 3 October 2026

Mutual Credit Guarantee Scheme for MSMEs (NCGTC), revised Mar 2026: 60% guarantee on credit up to ₹100 crore for buying equipment/machinery (machinery must now be ≥60% of project cost, down from 75%); now open to service-sector MSMEs as well as manufacturers/exporters; 5% upfront contribution is refundable at 1% a year from year 4 if the loan performs. Apply through member lending institutions.

Amount
60% guarantee on loans up to ₹100 crore
Type of support
Loan / Credit
Best for
Growth / Scaling
Who can apply
MSMEs
Go to the official portalSource: Added by Sytezo, Oct 2026

MCGS-MSME gives lenders a 60% credit guarantee (through NCGTC) on large machinery loans to MSMEs, so they can borrow without heavy collateral.

Who can apply?
  • Udyam-registered MSMEs — manufacturers, exporters and (since Mar 2026) service enterprises.
  • Equipment/machinery must be at least 60% of the project cost (lowered from 75%).
What do you get?
  • 60% guarantee coverage on credit facilities up to ₹100 crore.
  • 5% upfront contribution, refundable at 1% a year from year 4 if the loan performs.
How to apply

Apply for the loan with a member lending institution (banks/NBFCs); the lender seeks the guarantee from NCGTC.

Objectives

Expand credit for capital investment by manufacturing and exporting MSMEs; revised in March 2026 to include service-sector MSMEs.

Key links

Deadlines, amounts and windows change. Check the official portal before you apply.

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