The National Bank for Agriculture and Rural Development (Nabard) has introduced a dedicated debt and credit guarantee product to ensure unhindered flow of credit in rural areas hit by the COVID-19 pandemic.
Daily Current Affairs Quiz 2020
Key-Points
It is a dedicated debt and credit guarantee product, to ensure unhindered flow of credit to the last mile in COVID-19-affected rural areas.
As per this programme, NABARD will provide partial guarantee on pooled loans extended to small and mid-sized MFIs. It will help facilitate ₹2,500 crore funding in the initial phase and is expected to be scaled up going forward.
NABARD has recently signed agreements with Vivriti Capital and Ujjivan Small Finance Bank to roll out the initiative that will enhance access to sustainable finance for micro enterprises and low-income households.