09th July 2021

Credit Guarantee Scheme for NBFC-MFIs

The Credit Guarantee Scheme, announced by the Government of India on 28th June 2021, is a critical regulatory intervention that focuses on supporting NBFC-MFIs overcome Covid related stress. The scheme will benefit end customers, including low income households and small entrepreneurs, as the funds would be used towards onward lending and not refinancing.

This note delves on:
  • Key Highlights of the Credit Guarantee for NBFC-MFIs
  • CG-MFI vs PCG 2.0
  • Impact on small MFIs
  • Benefits for investors
by Sandeep Singh & Raghavendra B