A milestone in augmenting the flow of credit and modernising and augmenting the production of MSMEs: Ashwani Kumar, President, FIEO
The approval of the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is a landmark decision, said Ashwani Kumar, President, FIEO. This will significantly enhance the financial accessibility of our micro, small and medium enterprises, particularly those engaged in manufacturing and exports. Lack of adequate financing for capital investments has long been a challenge for MSMEs, restricting their ability to scale and compete in global markets.
City Air News
Jan 30, 2025 06:48
0
The approval of the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is a landmark decision, said Ashwani Kumar, President, FIEO. This will significantly enhance the financial accessibility of our micro, small and medium enterprises, particularly those engaged in manufacturing and exports. Lack of adequate financing for capital investments has long been a challenge for MSMEs, restricting their ability to scale and compete in global markets.
With 60% guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC) and a credit facility of up to ₹100 crore, said FIEO Chief, will provide MSMEs now much-needed support to invest in modern machinery and equipment. This move aligns perfectly with the ‘Make in India, Make for the World’ vision, enabling our enterprises to boost production, improve quality, and expand their global footprint.
The flexible repayment terms and zero annual guarantee fee in the first year make this scheme even more attractive. It will encourage more MSMEs to upgrade technology, enhance productivity, and integrate into global supply chains, positioning India as a preferred manufacturing hub.
President, FIEO welcomes this initiative and urge the government to ensure seamless implementation, faster loan approvals, and broad awareness among MSMEs, so that they can fully leverage the benefits of this scheme.
