RAS question
What is the cumulative guarantee limit under MCGS-MSME?
Correct answer: (C) ₹7 lakh crore.
The cumulative guarantee limit under MCGS-MSME is Rs. 7 lakh crore.
Explanation
MCGS-MSME is a credit guarantee scheme for eligible MSMEs seeking finance for equipment or machinery. The PIB release says the scheme provides 60% guarantee coverage by the National Credit Guarantee Trustee Company Limited to Member Lending Institutions for credit facilities up to Rs. 100 crore. For the MCQ, the decisive line is the scheme's applicability clause: it applies to loans sanctioned under MCGS-MSME for four years from the issue of operational guidelines, or until cumulative guarantees of Rs. 7 lakh crore are issued, whichever happens earlier. That makes Rs. 7 lakh crore the cumulative guarantee limit, while the Rs. 100 crore figure is the per-loan guarantee-linked credit ceiling.
Why the other options are wrong
- (A) Rs. 1 lakh crore is not stated in the PIB release as either the scheme's cumulative guarantee cap or its per-loan ceiling.
- (B) Rs. 3 lakh crore does not match the PIB applicability clause, which sets the cumulative guarantee trigger at Rs. 7 lakh crore.
- (D) Rs. 10 lakh crore overstates the limit; the cited release caps cumulative guarantees at Rs. 7 lakh crore.
Concept
This tests government credit-support schemes for MSMEs, especially the distinction between a scheme's duration, per-loan ceiling and aggregate guarantee limit. RAS economy questions often use such numbers to check whether candidates have read budget-linked scheme details precisely.