Sa-Dhan, a self-regulatory group for microfinance establishments (MFIs), has written to Finance Minister Nirmala Sitharaman looking for allocation of extra Rs 7,500 crore for the credit guarantee scheme for micro lenders.
We wish to take this chance to request you to approve an extra quantity of comparable extent viz. Rs 7,500 crore for the credit guarantee scheme for MFIs. The extra quantity will assist the funds stream for MFIs with decrease grading, that are smaller and cater to poorer sections and distant areas, the letter famous.
Sa-Dhan has issued a press launch foundation the letter written to the Finance Minister.
The letter mentioned banks are accounting for this (MFI) portfolio beneath NBFC class and as soon as the publicity restrict beneath NBFCs is reached, banks are unable to approve more funding for micro financiers.
We sincerely request that banks may very well be instructed to ebook this portfolio beneath separate head of MFIs with appropriate publicity norms, the letter learn.
Sa-Dhan mentioned Ministry of Finance has been eager that the credit guarantee scheme is broadly utilized by all MFIs throughout the nation and never restricted to a choose few.
In its letter to Sitharaman, Sa-Dhan has famous that information aggregated from MFIs and communicated to Department of Financial Services within the finance ministry signifies that MFIs have utilized for Rs 18,500 crore from 44 banks.
We have been coordinating with Ministry of Finance on disbursement of funds and beneficiaries. Ministry of Finance has been keen to trace the Credit Guarantee scheme and perceive the general impression, Sa-Dhan Executive Director P Satish mentioned within the launch.
Sa-Dhan has 229 members reaching out to 33 states/UTs and 593 districts. It consists of SHG selling establishments, MFIs (for revenue and never for revenue), banks, ranking companies, capability constructing establishments.
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