Access to credit is one of the most common problems faced by Micro and Small firms (MSEs) in India. This problem is not new to MSEs and has received considerable policy focus over the years. Yet, it continues to be a major impediment to the growth of these firms. We try and understand the credit constraint faced by MSEs and explore an innovative approach to ease the constraint faced by them. We study the Mutual Credit Guarantee Schemes (MCGSs) which have been successfully implemented in several European countries and pilot projects for the same in India have yielded promising results. This chapter has four broad objectives. The first is to highlight the credit constraint faced by the MSEs in the manufacturing sector using the most recent enterprise surveys. The second is to describe in detail the structure of MCGSs and the international experience of MCGSs. The third is to describe the past experiments of MCGSs in India and understand the learnings that have to be kept in mind while designing an MCGS for India. The fourth objective is to provide the parameters based on which an MCGS for India should be designed.