For repayment, loans up to Rs 500 million will have a repayment period of 8 years, including a 2-year grace period. For loans exceeding Rs 500 million, extended repayment schedules and moratorium options will be available. Borrowers must make an upfront contribution of 5% of the loan amount at the time of application.

The annual guarantee fee structure includes no fee for the sanction year, followed by a 1.5% per annum charge for the next three years, which then reduces to 1% per annum thereafter. The scheme will remain valid for four years from the issuance of operational guidelines or until the guarantee corpus reaches Rs7 trillion, whichever occurs earlier. This high-impact financial intervention is expected to catalyse technological adoption, operational efficiency, and business expansion in the MSME sector. By addressing capital constraints, the scheme empowers enterprises to enhance their competitiveness and productivity, reinforcing their role in India’s economic growth.