Under this scheme, the National Credit Guarantee Trustee Company Ltd (NCGTC) will provide 60% guarantee coverage to member lending institutions (MLIs) for loans sanctioned to eligible MSMEs.
Mumbai: Union Finance Minister Nirmala Sitharaman on Monday launched the Mutual Credit Guarantee Scheme for MSMEs, a key initiative announced in the Union Budget 2024-25 to support micro, small, and medium enterprises. The scheme enables collateral-free loans of up to Rs 100 crore for purchasing plants, machinery or equipment.
Under this scheme, the National Credit Guarantee Trustee Company Ltd (NCGTC) will provide 60% guarantee coverage to member lending institutions (MLIs) for loans sanctioned to eligible MSMEs.
At the launch event in Mumbai, the finance minister also distributed sanction letters to MSMEs qualifying for the scheme. 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 percent of the project cost.
Sitharaman said that the last three Budgets focused on improving MSMEs, including the government-guaranteed loan in the current Budget. She stressed that the government’s focus has not shifted from capital expenditure to consumption expenditure.
Earlier, at a post-Budget media briefing, the finance minister said that the heavy selling by foreign investors could be a result of their investments in India delivering good returns and allowing for profit-booking. India has an environment where investments are yielding good returns, she added.
The finance minister also said the government would continue to rationalise duties as part of its efforts to build an investor-friendly country.
The government's supply measures and the Reserve Bank’s demand-side initiatives are working in tandem to control price rise, Sitharaman said.
