News- 5 Mutual Credit Guarantee Scheme
Why is it in the news?
Scheme modified to support MSME manufacturers and exporters.
It aims to enhance credit availability for MSMEs.
Category: Economy
Important Points:
● Provides 60% guarantee coverage through NCGTC
● Covers loans up to ₹100 crore for MSMEs
● Target beneficiaries include MSMEs with Udyam registration
● Eligibility extended to service sector MSMEs
● Minimum project cost reduced from 75% to 60%
● Upfront contribution made refundable over time
● Guarantee period fixed at 10 years
● Applicable for loans sanctioned within 4 years
● Supports purchase of machinery and equipment