Government plans credit guarantee scheme to ease MFI stress
Published on: Dec. 17, 2025, 12:31 a.m. | Source: The Economic Times
The scheme would encourage banks to lend to microfinance institutions (MFIs), especially the smaller ones, which are facing liquidity crunch amid limited access to bank funding. An announcement to this end is likely in the 2026 budget, people cited above said. The likely size of the guarantee programme is not known.
