The National Bank for Agriculture and Rural Development has revealed a dedicated debt and credit guarantee product named as “Structured Finance and Partial Guarantee Program for Non-Banking Finance Companies (NBFC)-Micro Finance Institutions (MFIs)”. The newly launched product seeks to offer undisturbed flow of credit to the last mile in rural areas hit by the pandemic.
The Structured Finance and Partial Guarantee Program for NBFC-MFIs includes offering partial guarantee on pooled loans offered to small and mid-sized MFIs. It will help in facilitating Rs 2,500 crore funding in the initial phase which is expected to be scaled up in the future. The program is targeting to cover over 1 million households across 28 States and 650 districts.
Important takeaways for all competitive exams:
- Chairman of National Bank for Agriculture and Rural Development: Govinda Rajulu Chintala.