RAS question
What is the maximum loan amount available under the MCGS-MSME scheme?
Correct answer: (C) ₹100 crore.
Under MCGS-MSME, guarantee coverage is available for loans up to ₹100 crore for the purchase of equipment and machinery.
Explanation
MCGS-MSME is framed around credit support for MSMEs that need to buy plant and machinery or equipment. The PIB release states that the Government approved the Mutual Credit Guarantee Scheme for MSMEs to provide 60% guarantee coverage by the National Credit Guarantee Trustee Company Limited to member lending institutions for credit facilities sanctioned to eligible MSMEs. For the exam point, the cap is the key detail: loans up to Rs. 100 crore for purchase of plant and machinery or equipment are eligible for guarantee coverage, and the salient features say the guaranteed loan amount shall not exceed Rs. 100 crore. That is why ₹100 crore is the maximum loan amount under the scheme.
Why the other options are wrong
- (A) ₹50 crore is below the scheme ceiling; guaranteed loans can go up to Rs. 100 crore.
- (B) ₹75 crore is also below the notified maximum and does not match the Rs. 100 crore cap stated for MCGS-MSME.
- (D) ₹200 crore exceeds the scheme limit because the PIB release says the guaranteed loan amount shall not exceed Rs. 100 crore.
Concept
This tests government schemes for MSME credit and manufacturing support, a recurring RAS economy area because such schemes link budget announcements, credit guarantees and industrial growth. The exact loan ceiling is often the examinable trigger.