Credit Guarantee Scheme: Banks disburse Rs 7,500 crore under Credit Guarantee Scheme for micro finance institutions
“Credit Guarantee for MFIs fully utilised within 75 days. Rs 7500 cr sanctioned to #MFIs under #CGSMFI for onlending to small borrowers. Big boost to consumption and livelihoods,” the ministry said in a tweet.
Under the scheme, lending of up to Rs 1.25 lakh was provided.
“#CGSMFI supported 92 NBFC-MFIs/MFIs through 20 lenders. MFR-2 and below MFIs received around 45% of the sanction amount at reasonable rates. The scheme played catalytic role in facilitating credit to bottom of the pyramid borrowers in these difficult times,” it added.
Loans from banks are capped at the marginal cost of funds based lending rate (MCLR) plus 2 per cent. Maximum loan tenure is three years, and 80 per cent of assistance is to be used by MFIs for incremental lending.
Interest rates will be at least 2 per cent below the maximum rate prescribed by RBI.