credit guarantee scheme: MFI body Sa-Dhan writes to FM seeking Rs 7,500 crores towards Credit Guarantee Scheme
“We would like to take this opportunity to request you to approve an additional amount of Rs 7500 crores for the Credit Guarantee Scheme for the MFIs,” the letter states. “The additional amounts will support the funds flow for MFIs with lower grading, which are smaller and cater to poorer sections and remoter areas.”
“The Ministry of Finance has been eager to track the scheme and understand the overall impact,” said P. Satish – Executive Director, Sa-Dhan. “The additional Rs 7,500 crores will help smaller MFIs and non NBFC MFIs to reach out to the most vulnerable people of the country in the government’s endeavour of financial inclusion.”
According to data with the Ministry of Finance, even smaller, lower -rated and non-NBFC-MFIs have applied for loans worth Rs 18,500 crores from 44 banks.