FM's Rs 75,000-cr package may lower cost of funds for NBFCs, microfin companies

The FM’s proposal to have a special fund of ₹30,000 crore and partial credit guarantee scheme worth ₹45,000 crore could ease fears that some of these lenders could go belly-up due to tight liquidity. The two schemes could help these firms raise money, and also lend to SMEs. The government will guarantee all securities under the ₹30,000-crore scheme while the ₹45,000-crore scheme comprises a guarantee of up to 20%.

from Banking/Finance-Industry-Economic Times https://ift.tt/2zxwm0y