Blitz Bureau
NEW DELHI; The Centre on February 17 launched the Mutual Credit Guarantee Scheme for MSMEs, which was announced in the Union Budget 2024-25 to boost the micro, small, and medium enterprises. The scheme facilitates collateral-free loans to MSMEs by providing loans up to Rs 100 crore for the purchase of plant, machinery, or equipment.
The scheme would provide 60 per cent guarantee coverage by the National Credit Guarantee Trustee Company Ltd (NCGTC) to member lending institutions (MLIs) for a credit facility up to Rs 100 crore, sanctioned to eligible MSMEs under MCGS-MSME for the purchase of equipment/machinery.
Launching the scheme, Sitharaman also distributed sanction letters to MSMEs eligible under the scheme in Mumbai.
The scheme is expected to facilitate easy availability of credit for MSMEs and give a major boost to the manufacturing sector in India.
According to the scheme, the borrower should be an MSME with a valid Udyam Registration Number, the loan amount guaranteed should not exceed Rs 100 crore, the project cost could be of higher amounts also and the minimum cost of equipment /machinery is 75 per cent of the project cost.
Sitharaman and Minister of State for Finance Pankaj Chaudhary also handed over the keys to homebuyers who have benefitted due to the SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund during the post-Budget interaction programme with stakeholders here.
As of January 24, 2025, the SWAMIH Fund has successfully delivered over 50,000 homes, with a commitment to deliver an additional 20,000 homes each year for the next three years.
