MCGS-MSME — eligibility, benefit, norms, documents (Central)

§1Who it is for

MSMEs (manufacturing and, since Mar 2026, service sector) buying plant, machinery or equipment
Exporter MSMEs (special window since Mar 2026)

MSME manufacturers and service units with a big machinery or equipment purchase, and established exporters

Working-capital-only needs, or units already NPA

MSME with a valid Udyam Registration Number.
Not an NPA with any lender.
Cost of equipment/machinery must be at least 60% of project cost (reduced from 75% in March 2026).
Service sector MSMEs included from March 2026.
Exporter window: profitable units that exported at least 25% of sales turnover in each of the previous 3 financial years and meet export realisation conditions.

60% guarantee coverage by NCGTC to the lender on loans up to Rs 100 crore for equipment/machinery. The project cost can be higher.
Exporter window: guaranteed loan amount Rs 20 crore, coverage 75% of the amount in default.
The 2025 release says the scheme will facilitate collateral-free loans.

Loans up to Rs 50 crore: repayment up to 8 years with up to 2 years moratorium on principal. Above Rs 50 crore: longer repayment and moratorium can be considered.
Upfront contribution: 5% of loan amount deposited when the guarantee is applied for. From Mar 2026 it is refundable at 1% each year from the 4th year onwards, subject to satisfactory performance of the loan.
Annual Guarantee Fee: nil in the year of sanction; 1.5% p.a. for the next 3 years; then 1% p.a., on loan outstanding as on 31 March of the previous year.
Guarantee expires after 10 years (Mar 2026 modification).
Exporter window: upfront contribution 2% of loan amount (maximum Rs 40 lakh), 1% each refundable in the 4th and 5th year; fee nil in year 1, then 0.50% of loan outstanding every year.
Eligible lenders: Scheduled Commercial Banks, NBFCs and All India Financial Institutions that sign an agreement with NCGTC.

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

1
Apply for the machinery loan at your bank or NBFC and ask for MCGS-MSME cover.
2
The lender sanctions the loan, submits loan details on the NCGTC portal with the fee, and gets confirmation of guarantee (PIB 18 Mar 2025).

Covers big-ticket machinery loans (up to Rs 100 crore) that CGTMSE does not, including medium enterprises.
The 2026 changes made the 5% upfront contribution refundable and lowered the machinery share from 75% to 60%.

Only 60% cover, so the bank still carries 40% risk and may still ask for collateral.
Real cost is high: 5% of the loan is blocked upfront (refunded only from year 4) plus 1.5% p.a. fee in years 2-4.
Operational guidelines and documents are not easy to find. PIB only points to ncgtc.in.

Eligibility check, DPR and application file — ask us on WhatsApp.

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.