About this scheme
A Government of India guarantee (through NCGTC) that lets a bank lend an MSME up to ₹100 crore to buy plant, machinery or equipment, with 60% of the loan guaranteed. Launched Jan 2025 and revised in March 2026 to reach more manufacturers and exporters: at least 60% of the project cost (down from 75%) must be for machinery/equipment, the 5% upfront contribution is now refundable from the fourth year, and service-sector MSMEs are now eligible.
What you get
- Loans up to ₹100 crore for plant, machinery and equipment
- 60% of the loan guaranteed by NCGTC — reduces collateral demanded by the bank
- Manufacturers, exporters and (from Mar 2026) service-sector MSMEs eligible
- 5% upfront contribution refunded 1% a year from year 4 onwards
Who qualifies
All industries qualify (no NIC restriction).
Available across India (central scheme).
How to apply
- 1Prepare a project report where ≥60% of cost is machinery/equipment
- 2Apply to a member bank/NBFC for a term loan under MCGS-MSME
- 3Bank appraises and requests NCGTC guarantee cover
- 4On sanction, pay the 5% upfront contribution (refundable from year 4)
Key terms and conditions
- At least 60% of project cost must be plant/machinery/equipment (was 75% before Mar 2026)
- Guarantee is to the lender; the borrower still repays in full
- Available through scheduled commercial banks and eligible NBFCs registered with NCGTC
- Aligned to Budget 2025-26; revised terms notified Mar 2026
What disqualifies you
- Udyam-registered MSMEs only
- Trading-only businesses not eligible
- Existing NPA/defaulters not eligible
Documents typically required
- Udyam registration
- Project report with machinery quotations
- Last 3 years financials
- KYC of promoters
The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.