Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME)
Department of Financial Services — NCGTC
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.
What changed: New in this edition (not in the June 2026 playbook)
Sources (2)
MCGS-MSME gives lenders a 60% credit guarantee (through NCGTC) on large machinery loans to MSMEs, so they can borrow without heavy collateral.
Objectives
Expand credit for capital investment by manufacturing and exporting MSMEs; revised in March 2026 to include service-sector MSMEs.
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.