The Government has updated the MCGS-MSME scheme to make it easier for MSMEs to access loans for business growth. Under this scheme, loans of up to ₹100 crore taken for machinery and equipment can get up to 60% government guarantee, which helps reduce the need for collateral.
The updated scheme now also includes service sector MSMEs, allowing more businesses to benefit. In addition, the upfront contribution paid under the scheme is now refundable, which helps reduce the initial financial burden.
There is also added support for export-oriented units, with higher guarantee coverage in certain cases.
This scheme can be useful for MSMEs planning to expand, upgrade equipment, or invest in business growth. Reviewing eligibility and discussing options with lenders early can help in making the most of this support.
🔗 Source: PIB Release