Mumbai, Feb 17 : The Centre on Monday 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 here, Union Finance Minister Nirmala 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.
FM 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.
As announced in Union Budget 2025-26, SWAMIH Fund 2 will be established as a blended finance facility with contributions from the government, banks, and private investors.
This fund of Rs 15,000 crore will aim for expeditious completion of another 1 lakh units.
At a media interaction during the event, the Finance Minister 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.
FM Sithraraman further stated that the Centre is working on more reforms in the insurance sector, in which 100 per cent foreign direct investment (FDI) has been allowed.
The current Budget proposes to raise the FDI cap for the insurance sector from 74 per cent to 100 per cent.
Guardrails are being put so that citizens’ money towards premium payment for insurance is kept within the country, she said. (With inputs from IANS)