National Bank for Agriculture and Rural Development (NABARD) has unveiled a Structured Finance and Partial Guarantee Programme to Non-Banking Finance Companies (NBFCs) and Microfinance Institutions (MFIs). It is a dedicated debt and credit guarantee product. The programme aims to ensure the undisturbed flow of credit in COVID-19-affected rural areas. To launch the programme, NABARD has signed agreements with Vivriti Capital and Ujjivan Small Finance Bank. Structured Finance and Partial Guarantee Programme: ? Under the Structured Finance and Partial Guarantee Programme, NABARD will provide partial guarantee on pooled loans extended to small and mid-sized Microfinance Institutions (MFIs). ? It will help facilitate Rs.2,500 crore funding in the initial phase and is expected to be scaled up in the future. ? The program will cover over 1 million households across 28 states and 650 districts. ? It is expected that the partially guaranteed loan facility will catalyze financing to millions of households, agricultural, and business markets to sustain in the post-COVID-19 situation. ? With NABARD as a guarantor and a convincing product construct in place, the programme has attracted many banks and small finance banks to participate.
