Supporting Ideas into Reality
Recognizing the private sector as a critical partner for the growth of our economy. The government has always placed much expectations on the private players to step in for public welfare as we advanced together as a nation. Therefore, it is with pleasure that we introduce the National Credit GuaranteeScheme (NCGS), an initiative that will further empower the private sector’s role in reviving the
As a countercyclical policy measure during the COVID-19 pandemic situation, the National Credit Guarantee Scheme (NCGS) is launched on October 5th, 2020. The NCGS is an intervention that will ease access to finance, by Government guaranteeing a portion of the loans availed under it.
Expansion of credit is necessary for investments. However, collateral requirement is a major impediment, in particular, for aspiring entrepreneurs to avail financing. Therefore, the NCGS will alleviate this challenge of aspiring entrepreneurs, especially under the Cottage and Small Industry.
All loans under the Cottage and Small category will not require collateral and startups under the CSI category will be eligible for 100 percent debt financing under the NCGS.
Unlike practices across the globe, the medium and large categories will also be eligible for loans under the NCGS. However, under such categories, a portion of guarantee will be shared between the Government and the Bank and the balance will be secured with collateral from the borrower. Therefore, the NCGS has been designed to include all categories of industries, but in a responsive
and equitable manner.