A center for issuing loans up to 100 rupees for MSME units under the mutual credit guarantee system; Check the details

The McGS-MSME mutual credit guarantee (MSMES (MSMES) is approved by the center. This scheme will provide 60 % guarantee coverage by the National Credit Credit Credit Company (NCGTC) for member lending institutions of credit facilities that reach 100 rupees that have been punished on MSMES qualified to purchase equipment/machinery.

The scheme will provide 60 % guarantee coverage for member lending institutions (MLIS) for credit facilities of up to 100 rupees grassy grassy grassy grassy for qualified msmes. MLI includes all scheduled commercial banks (SCBS), NBFCS, and all financial institutions in India (AIFIS) that are registered with NCGTC under this initiative.

Loans of up to 100 rupees will be issued to acquire the factory, machinery or equipment qualified to obtain guarantee coverage under the plan, which aims to support the manufacturing sector.

The scheme will be applied to all loans that were punished under MCGS-MSME within 4 years from the date of issuing the operational guidelines of the plan or even a cumulative guarantee with a rupee value. 7 rupees were reached, whichever comes first.

To give a boost to manufacturing by facilitating the availability of credit for the purchase of the factory and machinery / equipment, “the mutual credit guarantee plan for banks and financial money is presented. The Ministry of Finance said in a statement that the institutions to small and medium -sized companies that need debt capital to expand and grow.

Main features

• To be qualified to obtain a loan guarantee system, the borrower must be a small, small and medium enterprise (MSME) registered with a valid UDYAM registration number.
• The content of the guaranteed loan should not exceed 100 rupees, while the cost of the project may be higher. The minimum cost of equipment/machinery should be 75 % of the project cost.
• For loans up to 50 rupees, the payment period can reach 8 years with a period of stopping up to two years on the main installments. Loans that exceed 50 crores may have a different schedule of payment and the endowment period.
• A preliminary contribution must be deposited by 5 % of the loan amount at the time of applying for the guarantee coverage.
• There are no annual guarantee fees during the year of punishment.
• From the second year to the fourth year, the fees are 1.5 % of the amount of the loan due from March 31 of the previous year.
• Next, the annual warranty fees are 1 % of the amount of the loan due as of March 31 of the previous year.