- Maximum benefit
- 60% guarantee on loans up to ₹100 Crore (75% up to ₹20 Crore for eligible exporters)
- Who can apply
- Micro, Small, Medium enterprises
- Status
- Open; current term ends 26 January 2029
Is MCGS-MSME open? Key facts at a glance
MCGS-MSME (Central): 60% guarantee on loans up to ₹100 Crore (75% up to ₹20 Crore for eligible exporters).
Last verified: 20 Oct 2026. How we check our information
| Status | Open |
|---|---|
| Level | Central government scheme |
| Type of benefit | Credit Guarantee on Machinery Term Loans |
| Maximum benefit | 60% guarantee on loans up to ₹100 Crore (75% up to ₹20 Crore for eligible exporters) |
| Project cost range | Machinery-led projects (plant, machinery and equipment at least 60% of project cost) |
| Who can apply | Micro, Small, Medium enterprises (Manufacturing, Service) |
| Implementing agency | National Credit Guarantee Trustee Company (NCGTC), Department of Financial Services |
| Where to apply | NCGTC — MCGS-MSME |
| Official notification | Read the notification |
| Current term ends | 26 January 2029 |
| Last verified | 20 Oct 2026 · How we check |
What is MCGS-MSME?
MCGS-MSME, run by the National Credit Guarantee Trustee Company (NCGTC) from 27 January 2025, guarantees 60% of term loans that MSMEs take mainly to buy plant, machinery and equipment, for loans of up to ₹100 crore; well-performing exporters get 75% cover on loans of up to ₹20 crore.
Machinery and equipment must make up at least 60% of the project cost. Service-sector MSMEs were brought in in March 2026. The borrower pays an upfront contribution, and the scheme is open for four years from its guidelines or until ₹7 lakh crore of guarantees are issued, whichever comes first.
What are the key benefits of MCGS-MSME?
- 60% guarantee cover from NCGTC on term loans for plant, machinery and equipment, for loans of up to ₹100 crore.
- Exporters that qualify get 75% cover on loans of up to ₹20 crore.
- Guarantee fee for general MSMEs: nil in the first year, 1.5% a year for the next three years, then 1% a year for three years. Exporters: nil in the first year, then 0.5% a year.
- Upfront contribution of 5% of the loan, refunded at 1% a year from the fourth year; for exporters 2%, up to ₹40 lakh. The guarantee expires after 10 years (PIB, 21 March 2026).
- Available for four years from the issue of the guidelines (27 January 2025) or until guarantees of ₹7 lakh crore are issued, whichever comes first.
What could a unit get under MCGS-MSME?
The ceiling the scheme sets. What a particular unit receives depends on its project cost, location and the conditions on this page, so no rupee figure is worked out here.
Up to the scheme’s limits: 60% guarantee on loans up to ₹100 Crore (75% up to ₹20 Crore for eligible exporters)
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: NCGTC letter 1431/NCGTC/MCGS-MSME, 27 January 2025, and operational guidelines as modified on 24 February 2026 (NCGTC product page); PIB, 21 March 2026 (service-sector MSMEs, upfront contribution).
Who can apply for MCGS-MSME?
- MSMEs registered on Udyam, including service-sector MSMEs (added in March 2026), that are not an NPA with any lender.
- Machinery and equipment must be at least 60% of the project cost.
- For the exporter cover: profitable, exports of at least 25% of turnover in each of the last three years, and export proceeds written off below 10%.
Eligible business types
MSME categories covered
Eligible industries
How do I apply for MCGS-MSME?
- There is no direct application: ask your bank or NBFC to cover the machinery loan under MCGS-MSME.
- The lender seeks the guarantee from NCGTC.
Apply at: NCGTC — MCGS-MSME
Which documents are needed for MCGS-MSME?
- Udyam Registration
- Project report showing plant, machinery and equipment at 60% or more of project cost
- Term loan application to the bank or NBFC
- Export turnover for the last three years (for the exporter cover)
Why are MCGS-MSME applications rejected?
- Borrower is an NPA with any lender
- Machinery and equipment below 60% of project cost
- Exporter cover sought without exports of at least 25% of turnover in each of the last three years
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about MCGS-MSME
- Is MCGS-MSME open?
- Yes. The current term runs until 26 January 2029. Status last verified: 20 Oct 2026.
- Who can apply for MCGS-MSME?
- Micro, Small, Medium enterprises (Manufacturing, Service).
- What is the maximum benefit under MCGS-MSME?
- 60% guarantee on loans up to ₹100 Crore (75% up to ₹20 Crore for eligible exporters).
- How do I apply for MCGS-MSME?
- 1. There is no direct application: ask your bank or NBFC to cover the machinery loan under MCGS-MSME. 2. The lender seeks the guarantee from NCGTC. Apply at: NCGTC — MCGS-MSME.
- Until when can I apply for MCGS-MSME?
- The current term runs until 26 January 2029. Projects must usually be registered or commence within the term; check the cut-off before you rely on it.
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