Government Unveils ₹20,000 Crore Guarantee Fund for Small Businesses, Self-Employed
CCNBC Awaaz•20-03-2026, 12:39
Government Unveils ₹20,000 Crore Guarantee Fund for Small Businesses, Self-Employed
- •Government to launch a ₹20,000 crore credit guarantee fund for microfinance companies, benefiting small businesses and self-employed individuals.
- •The fund aims to provide cheaper and easier loans to microfinance companies, addressing their long-standing issues of high interest rates and funding scarcity.
- •Banks will be encouraged to lend to microfinance companies with government guarantees, potentially generating up to ₹1.5 lakh crore in loans.
- •A 2% cap on lending rates (MCLR) for banks providing loans to microfinance companies is also being considered to ensure affordable credit.
- •This initiative is expected to boost the rural economy, support small borrowers, and accelerate growth in the microfinance sector.
