Banks have absolutely utilised Rs 7,500 crore beneath the Credit score Assure Scheme for Micro Finance Establishments (MFIs) to learn the smallest of the debtors, the finance ministry mentioned on Wednesday.
The scheme was introduced by Finance Minister Nirmala Sitharaman in June as a part of a Rs 6.29 lakh crore package deal to supply reduction to varied sectors affected by the second wave of the COVID-19 pandemic.
“Credit score Assure for MFIs absolutely utilised inside 75 days. Rs 7500 cr sanctioned to #MFIs beneath #CGSMFI for on lending to small debtors. Huge enhance to consumption and livelihoods,” the ministry mentioned in a tweet.
Below the scheme, lending of as much as Rs 1.25 lakh was supplied.
“#CGSMFI supported 92 NBFC-MFIs/MFIs by 20 lenders. MFR-2 and beneath MFIs obtained round 45% of the sanction quantity at affordable charges. The scheme performed catalytic position in facilitating credit score to backside of the pyramid debtors in these troublesome occasions,” it added.
Loans from banks are capped on the marginal value of funds primarily based lending charge (MCLR) plus 2 per cent. Most mortgage tenure is three years, and 80 per cent of help is for use by MFIs for incremental lending.
Rates of interest might be not less than 2 per cent beneath the utmost charge prescribed by RBI.