Govt extends validity of Credit Guarantee Scheme for Microfinance Institutions upto August 31
It also approved increasing the maximum loan amount for Large-Scale Non-Banking Financial Company-Microfinance Institutions (NBFC-MFIs) and MFIs from Rs 300 billion to Rs 1,000 Million under the overall ceiling of 20% of Assets Under Management (AUM).
Under the extension of validity and increase in maximum loan amount, it is now expected to facilitate better utilization of the scheme and increased credit flow to the MFI sector.
Earlier in March this year, the Center had introduced the CGSMFI-2.0 scheme to provide guarantee cover to Banks/FIs through the National Credit Guarantee Trustee Corporation (NCGTC) against expected losses in their financial assistance to NBFC-MFIs/MFIs for granting loans to small borrowers.
As of June 10, the government reported that loans totaling Rs 770 million had been sanctioned under the programme.
