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Business, & agriculture finance

Mutual Credit Guarantee Scheme for (MCGS-)

Term-loan finance for purchasing equipment or machinery, with guarantee support up to ₹100 crore and 60% cover of default.

Guarantee-supported loanUp to ₹100 crore; a higher sanctioned loan may be split into a ₹100-crore guaranteed schedule and a remaining schedule.Interest rateAs per extant MSME-advance guidelines; the page publishes no numeric benchmark or spread.Eligible borrowerManufacturing MSME with valid Udyam registration; existing or new equipment/machinery project; account must not be NPA with any lender at sanction/disbursement.
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Quick eligibility check

Mutual Credit Guarantee Scheme for (MCGS-)

0 of 9 answered

Answer what you know. This guide compares your answers with the criteria published for this product; it is not an approval decision. Your answers stay on this device.

1Do you meet this requirement: Manufacturing MSME with valid Udyam registration?

Published source: Eligible borrower

2Do you meet this requirement: existing or new equipment/machinery project?

Published source: Eligible borrower

3Do you meet this requirement: account must not be NPA with any lender at sanction/disbursement?

Published source: Eligible borrower

4Do you meet this requirement: Application and KYC?

Published source: Documents

5Do you meet this requirement: Udyam registration?

Published source: Documents

6Document checkDo you have this required document or proof: Application and KYC?

Published source: Documents

7Document checkDo you have this required document or proof: Udyam registration?

Published source: Documents

8Document checkDo you have this required document or proof: Manufacturing/project and equipment invoices?

Published source: Documents

9Document checkDo you have this required document or proof: Project-cost and margin records?

Published source: Documents
0 of 9 answeredAnswer the remaining questions to see your checklist result.
✓ Manually checked 31 Aug 2026 · active
Offered byBank of Maharashtra

India

Key facts

What the official sources publish

Every value belongs to this exact product. Expand any fact to inspect its official evidence in place.

Eligible borrowerManufacturing MSME with valid Udyam registration; existing or new equipment/machinery project; account must not be NPA with any lender at sanction/disbursement.View source
Complete borrower and eligibility rows reviewed.
Source
MCGS-
Page / section
Eligible borrower and eligibility criteria
Accessed
31 Aug 2026
Confidence
high
Open official source ↗
Guarantee-supported loanUp to ₹100 crore; a higher sanctioned loan may be split into a ₹100-crore guaranteed schedule and a remaining schedule.View source
Quantum and higher-sanction note retained.
Source
MCGS-
Page / section
Quantum of loan
Accessed
31 Aug 2026
Confidence
high
Open official source ↗
Equipment shareEquipment or machinery must be at least 75% of project cost; the scheme states no negative list for business activities.View source
Project composition rule reviewed.
Source
MCGS-
Page / section
Eligibility criteria
Accessed
31 Aug 2026
Confidence
high
Open official source ↗
Margin25% of project cost for the term loan.View source
Published margin row reviewed.
Source
MCGS-
Page / section
Margin
Accessed
31 Aug 2026
Confidence
high
Open official source ↗
Interest rateAs per extant MSME-advance guidelines; the page publishes no numeric benchmark or spread.View source
No numeric product-specific rate was found on the complete table.
Source
MCGS-
Page / section
Rate of Interest
Accessed
31 Aug 2026
Confidence
high
Open official source ↗
RepaymentUp to ₹50 crore: maximum 8 years plus up to 2-year principal moratorium (10 years including moratorium). Above ₹50 crore: maximum 12 years plus up to 3-year principal moratorium (15 years including moratorium).View source
Both loan-size tenor bands and moratoriums reviewed.
Source
MCGS-
Page / section
Repayment period
Accessed
31 Aug 2026
Confidence
high
Open official source ↗
Guarantee coverNCGTC covers 60% of the amount in default; an upfront initial contribution of 5% of loan amount, capped at ₹5 crore, is deposited with the trust.View source
Coverage and contribution rows reviewed.
Source
MCGS-
Page / section
Guarantee coverage and initial contribution
Accessed
31 Aug 2026
Confidence
high
Open official source ↗
SecurityHypothecation/mortgage of assets created from bank finance; if collateral is taken, guarantee applies only to loan amount net of collateral value.View source
Both security rules reviewed.
Source
MCGS-
Page / section
Primary and collateral security
Accessed
31 Aug 2026
Confidence
high
Open official source ↗
Geographic limitsIndiaView source
The manually reviewed product record states: “India”.
Source
Mutual Credit Guarantee Scheme for (MCGS-) — official product page
Page / section
Published product metadata
Accessed
31 Aug 2026
Confidence
high
Open official source ↗
DocumentsApplication and KYC; Udyam registration; Manufacturing/project and equipment invoices; Project-cost and margin records; Primary-security and charge-creation documents; NCGTC guarantee contribution documentsView source
The manually reviewed product record states: “Application and ; Udyam registration; Manufacturing/project and equipment invoices; Project-cost and margin records; Primary-security and charge-creation documents; guarantee contribution documents”.
Source
Mutual Credit Guarantee Scheme for (MCGS-) — official product page
Page / section
Published product metadata
Accessed
31 Aug 2026
Confidence
high
Open official source ↗

Benefits and features

  • Term loan guarantee support up to ₹100 crore
  • 60% guarantee cover of amount in default
  • Greenfield and brownfield equipment projects
  • No negative activity list stated
  • Up to 8–12 years repayment depending on loan size

Eligibility

  • Manufacturing with valid Udyam registration at sanction; account must not be with any lender at sanction/disbursement; equipment or machinery must be at least 75% of project cost.

Passing a listed condition does not mean the bank will approve an application.

Documents the bank lists

  • Application and
  • Udyam registration
  • Manufacturing/project and equipment invoices
  • Project-cost and margin records
  • Primary-security and charge-creation documents
  • guarantee contribution documents

Related official documents

Mutual Credit Guarantee Scheme for MSMEsofficial-product-page · current · accessed 31 Aug 2026
↗

Plan before applying

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Loan repayment estimate

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One monthly payment₹21,696twenty-one thousand six hundred ninety-six rupees
Interest paid over the full loan₹27,06,939twenty-seven lakh six thousand nine hundred thirty-nine rupees
Everything you repay₹52,06,939fifty-two lakh six thousand nine hundred thirty-nine rupees

This is only an estimate, not a bank or insurer offer. The final amount can change because of taxes, fees, rate changes and provider rules.

Use the published table

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Purpose · Published detailTerm-loan guarantee for equipment/machinery projects

This value is copied from MCGS- complete scheme parameters. Check the table notes before relying on it.

Source: MCGS- · Complete 15-parameter table Open official source ↗

Published tables

Complete rates, limits and schedules

Tables preserve every reviewed row and column from the cited official source.

Table 1 · 14 rows · 2 columnsMCGS-MSME complete scheme parametersView tableHide table

Scroll sideways to view every column

MCGS-MSME complete scheme parameters
ParameterPublished detail
PurposeTerm-loan guarantee for equipment/machinery projects
Eligible borrowerManufacturing with Udyam; non- at sanction/disbursement
Equipment shareMinimum 75% of project cost
Duration4 years from 27 January 2025 or until ₹7 lakh crore cumulative loans, whichever earlier
FacilityTerm loan
Guarantee-supported amount₹100 crore; higher loan can use two schedules
Margin25% of project cost
RateExtant -advance guidelines
Up to ₹50 croreMaximum 8 years plus 2-year principal moratorium (10 years including moratorium)
Above ₹50 croreMaximum 12 years plus 3-year principal moratorium (15 years including moratorium)
Primary securityHypothecation/mortgage of financed assets; charge for Bank and
Guarantee60% of amount in default
Initial contribution5% of loan amount, capped at ₹5 crore
TakeoverAllowed subject to terms and conditions
MCGS- · Complete 15-parameter table · accessed 31 Aug 2026Open official source ↗

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