NEW DELHI, March 21 -- The Centre on Saturday announced key revisions to the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), expanding its scope beyond manufacturing and making it easier for firms to access collateral-free credit.

As part of the changes, service-sector micro, small and medium enterprises (MSMEs) can now participate in the scheme, and the minimum machinery or equipment cost requirement has been lowered to 60% from 75% of the total project cost, according to a finance ministry statement.

Loans of up to Rs.100 crore will continue to receive 60% guarantee coverage from the National Credit Guarantee Trustee Company Limited (NCGTC), while the previously non-refundable 5% upfront contribution will now be partially refund...