Sa-Dhan seeks Rs 7,500 cr more for credit guarantee scheme for MFIs

Sa-Dhan, a self-regulatory organization for microfinance institutions (MFIs), has written to Finance Minister Nirmala Sitharaman seeking allocation of additional Rs 7,500 crore for the credit guarantee scheme for micro lenders.

We would like to take this opportunity to request you to approve an additional amount of similar extent viz. Rs 7,500 crore for the credit guarantee scheme for MFIs. The additional amount will support the funds flow for MFIs with lower grading, which are smaller and cater to poorer sections and remote areas, the letter noted.

Sa-Dhan has issued a press release basis the letter written to the Finance Minister.

The letter said