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The sore point with the MSME credit guarantee scheme

Borrowers who don’t have access to formal finance will be left high and dry.

May 20, 2020 / 11:53 AM IST
The sore point with the MSME credit guarantee scheme

The 100 percent credit guarantee for MSME loans worth Rs 3 lakh crore is one of the better features of the package unveiled by the government to tackle COVID-19’s economic effects. As the first lines of fine print slowly emerge, it appears that this scheme will be administered through a special purpose vehicle or a credit guarantee trust, reported the Financial Express citing draft guidelines issued by SIDBI. The government currently has a swathe of credit guarantee funds catering to...

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