UPSC Articles
Structured Finance and Partial Guarantee Programme to NBFC-MFIs launched
Part of: GS-Prelims and GS-III – Economy
In News:
- National Bank for Agriculture and Rural Development (NABARD) has introduced ‘Structured Finance and Partial Guarantee Programme to NBFC-MFIs.’
- The programme is for Non-Banking Financial Company (NBFC) and Microfinance Institutions (MFIs).
Key takeaways
- It is a dedicated debt and credit guarantee programme.
- Objective: To ensure uninterrupted flow of credit to the last mile in COVID-19-affected rural areas.
- NABARD will provide partial guarantee on loans given to small and mid-sized MFIs.
- It will help facilitate ₹2,500 crore funding in the initial phase.
- NABARD has recently signed agreements with Vivriti Capital and Ujjivan Small Finance Bank to roll out the initiative.
