Archive · 6 Jan 2026
Government Considers Mega Microfinance Credit Guarantee Scheme
The Indian government is thinking about a big new plan to help small lenders called NBFCs.
This plan will protect them from risks that are not the fault of the small borrowers.
The plan is bigger than a similar one from the pandemic and will be managed by a government company.
The goal is to make sure these small lenders can keep giving loans even if there are problems they can't control.
Government considering a mega microfinance credit guarantee scheme for NBFCs in the upcoming budget.
Guarantee cover expected to be larger than the ₹7,500 crore offered during the pandemic.
Scheme to be managed by the National Credit Guarantee Trustee Company.
Aims to cover lending risks to NBFC-MFIs due to factors beyond small borrowers' control.
Focus on mitigating risks not attributable to the borrowers.
- Who
- Indian Government
- What
- Considering a mega microfinance credit guarantee scheme for NBFCs
- When
- Upcoming budget
- Where
- India
- Why
- To cover lending risks to NBFC-MFIs due to factors beyond small borrowers' control
- Scheme Type
- Credit Guarantee
- Managed By
- National Credit Guarantee Trustee Company
- Coverage
- Lending risk to NBFC-MFIs
- Purpose
- Mitigate risks beyond borrowers' control
- Budget Context
- Upcoming budget consideration