Why is it in the news?
The government launched a revised credit guarantee scheme for MFIs.
It aims to improve credit flow to small borrowers.
Category: Economy
Important Points:
● Provides guarantee cover through NCGTC
● Covers loans given to NBFC-MFIs and MFIs
● Targets small borrowers under RBI definition
● Guarantee coverage: 80% (small), 75% (medium), 70% (large)
● Guarantee fee is 0.50% per annum
● Valid till June 2026 or ₹20,000 crore coverage
● Aims to support 36 lakh small borrowers
● Enhances financial inclusion
● Encourages lending to underserved sectors