Govt may cap lending rates to MFIs under guarantee scheme
Published on: March 16, 2026, 6:03 a.m. | Source: The Economic Times
The finance ministry is set to direct banks to cap lending rates at 2% above MCLR for microfinance companies under a new credit guarantee scheme. This initiative aims to boost lending to smaller MFIs struggling with funding due to asset quality stress, with the NCGTC providing the guarantee cover.
