New Delhi, March 21 -- In a significant move to strengthen financial inclusion and support small borrowers, the government has launched a revamped credit guarantee scheme aimed at boosting the microfinance sector and improving credit flow to underserved segments.
The new Credit Guarantee Scheme for Microfinance Institutions (CGSMFI-2.0), introduced by the Ministry of Finance, is expected to enable loans worth up to Rs 20,000 crore, benefiting nearly 36 lakh borrowers across the country.
The scheme is designed to encourage banks and financial institutions to extend loans to microfinance institutions by reducing their lending risk.
Under the framework, a substantial portion of the loan amount will be backed by guarantee cover, particularly...