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      Question

      What is the key feature of the Mutual Credit Guarantee

      Scheme (MCGS) for MSMEs launched by the Finance Ministry?
      A It allows MSMEs to obtain loans up to โ‚น100 crore without collateral Correct Answer Incorrect Answer
      B It provides direct subsidies to MSMEs for infrastructure development Correct Answer Incorrect Answer
      C It reduces the interest rates on existing MSME loans Correct Answer Incorrect Answer
      D It replaces all previous MSME financing schemes Correct Answer Incorrect Answer
      E It offers tax exemptions for MSMEs investing in technology Correct Answer Incorrect Answer

      Solution

      The Mutual Credit Guarantee Scheme (MCGS) allows MSMEs to obtain loans up to โ‚น100 crore without collateral, improving access to credit.

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