Credit guarantee scheme unlikely to benefit lower rated MFIs
Published on: March 22, 2026, 7:57 p.m. | Source: The Economic Times
A new credit guarantee scheme aims to boost lending to microfinance firms. However, banks remain cautious. They will prioritize financially strong micro lenders with good credit ratings. Stressed microfinance institutions, especially smaller ones, may still face funding challenges. The guarantee offers partial protection but banks will not compromise their underwriting standards.
