NABARD has launched “Structured Finance and Partial Guarantee Programme” to NBFC-MFIs-entails offering partial guarantee on pooled loans extended to small and mid-sized micro finance institutions (MFIs), a release said.
Pact was signed between NABARD, Vivriti Capital and Ujjivan Small Finance Bank to roll out the initiative, which will boost access to sustainable finance for microenterprises and low-income households.
“The partially guaranteed loan facility will catalyse much-needed financing to millions of households, agricultural and business markets to sustain in the post COVID-19 environment," NABARD Chairman Mr G R Chintala said.
In the initial phase, Rs 2,500 crore (US$ 354.66 million) funding will be given that is expected to use in scaling up. This programme is expected to cover over 1 million households across 28 states and 650 districts, the release said.
The pooled loan issuance (PLI) structure offers the lending bank adequate comfort through NABARD's partial credit protection, lowers cost of capital as the rating of the loans increase and aid lenders in meeting priority sector goals.
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