It is an initiative designed to facilitate access to credit for MSMEs by offering a guarantee for loans extended to them by reducing the risk perceived by lenders.
Need To Know
- Who can avail the credit?: MSMEs with valid Udyam Registration Number.
- Loan Limit: Up to Rs 100 crore for purchase of equipment/machinery.
- Loan Guarantee: National Credit Guarantee Trustee Company Ltd (NCGTC) provides 60% guarantee coverage to Member Lending Institutions (MLIs).
- Project Costs: 75% of the project cost should be for equipment/machinery.
- Scheme Duration: Applicable for 4 years or until Rs. 7 lakh crore cumulative guarantee.
Source: The Hindu