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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 ₹100 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 ₹100 crore without collateral, improving access to credit.

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